Scottish & Southern Energy Plc (SSE) provides electrical utility services in the UK and Ireland. SSE’s primary focus is sustained, inflation adjusted, dividend growth driven by an organic growth (investment) focus. This is highlighted by expected annual investments of GBP 1.5-1.7bn until 2015 mainly in renewable energy (wind) diversifying its presently fossil fuel laden asset base. Whilst this focus forces management to concentrate on longer term value creation the combination could put pressure on the balance sheet. A risk is therefore increased Net Debt/Equity or equity offerings diluting investors if earnings and cash flow are less than expected and the large dividend payout is maintained. Increasing energy costs and affected margins remain a concern. To this end SSE entered the upstream gas market hedging ~ 6% of required volumes. Furthermore bad debts and renewable energy incentives remain a concern given the challenging economic backdrop in the U.K and Ireland. Despite this, stable cash flow, interest and dividend coverage are comfortable at 7.3x and 1.5x respectively.