Automatic speech recognition (ASR) performance suffers severely from non-stationary noise, precluding widespread use of ASR in natural environments. Recently, so-termed uncertainty-of-observation techniques have helped to recover good performance. These consider the clean speech features as a hidden variable, of which the observable features are only an imperfect estimate. An estimated error variance of features is therefore used to further guide recognition. Based on the same idea, we introduce a new strategy: Reducing the speech feature dimensionality for optimal discriminance under observation uncertainty can yield significantly improved recognition performance, and is derived easily via Fisher's criterion of discriminant analysis.