Company Profiles

Scottish & Southern Energy

United Kingdom

Scottish & Southern Energy (SSE), one of the United Kingdom's top energy suppliers and distributors, serves over 8 million customers. Unlike many utility companies, SSE generates a majority of the energy it supplies. Currently, just a portion of the company's fuel mix is derived from renewable energy sources. However, the company recognizes that against the backdrop of volatile oil prices and increasing climate change concerns, renewable energy sources are a necessary component of its growth and success. In response, the company has committed to more than doubling its renewable energy capacity by 2013. SSE also anticipates that more than two-thirds of its future investments will be spent on increasing the company's wind generation and distribution capabilities. SSE also predicts that by 2020 the carbon intensity of its generation stations will be reduced by 50% from 2005-2006 levels and 46% of its fuel mix will be generated through hydroelectric plants, wind farms, and biomass facilities. Portfolio 21 believes that these investments will place the company at a competitive advantage as ecological constraints continue to increase. SSE is planning to replace an existing 1000 MW coal-fired plant, scheduled to close in 2015, with an 800 MW high-efficiency supercritical boiler coal-fired plant. Portfolio 21 is investing in SSE based on its planned growth in renewable energy and will continue to monitor the company's coal-fired installed capacity to ensure it remains steady or decreases.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 3/31/09 and may not reflect current opinions or subsequent events.