SCANA To Merge Natural Gas Transportation Subsidiaries
Public Affairs Contact:
Robin Montgomery
(843) 576-8649

Investor Relations Contact:
John Winn
(803) 217-9240

Columbia, SC, June 25, 2004 - SCANA Corporation (NYSE:SCG) today announced that it plans to merge its two natural gas transportation companies: South Carolina Pipeline Corp. (SCPC) and SCG Pipeline, Inc. Company representatives will be working through details of the transition over the next six months, including meeting with customers. If approved, the merger would occur in the spring of 2005.

SCPC President and Chief Operating Officer George Bullwinkel said, "The merger is the logical next step for the two companies given the environment in today's natural gas marketplace. As a result of significant changes in the regulatory landscape at the federal level, we believe the combination of these pipeline companies will position us to respond to changes in the natural gas markets and meet the needs of our customers."

Under current operating regulations, SCPC provides a "bundled" natural gas procurement and delivery service. It buys gas at supply points around the Gulf of Mexico, contracts with interstate pipelines to have it transported into South Carolina, and then sells and delivers it to customers through its own 2,000-mile intrastate pipeline network. SCG Pipeline, which began operation in 2003, is an interstate pipeline company that transports gas in Georgia and South Carolina.

Under the merger proposal, SCPC and SCG would operate as a single interstate pipeline company that no longer sells natural gas; it would provide transportation services. The new company - as an interstate carrier - would fall under the regulatory oversight of the Federal Energy Regulatory Commission.

"Many large natural gas users have expressed an interest in managing their own purchasing strategies. With our company providing transportation-only services, our customers would have an opportunity to do that," Bullwinkel said.

"We believe most of our customers will embrace this change in our operations, and we will work very hard to help them through the transition. We will start that process immediately by contacting all of our customers within the next several days so that we can walk them through the details and answer any questions they might have."

Bullwinkel said customers may have more questions as plans to merge the companies move forward. He said customers seeking additional information should call (800) 784-7651.

SCANA Corporation, a Fortune 500 company headquartered in Columbia, South Carolina, is a registered holding company engaged, through subsidiaries, in regulated electric and natural gas utility operations, telecommunications and other diversified energy-related businesses. The Company serves approximately 574,000 electric customers in South Carolina and more than one million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA Corporation and its businesses is available on the Company's web site at


This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Although SCANA Corporation believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: (1) that the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment, (2) changes in the utility and non-utility regulatory environment, (3) changes in the economy, especially in areas served by the Company's subsidiaries, (4) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets, (5) growth opportunities for the Company's regulated and diversified subsidiaries, (6) the results of financing efforts, (7) changes in the Company's accounting policies, (8) weather conditions, especially in areas served by the Company's subsidiaries, (9) performance of and marketability of the Company's investments in telecommunications companies, (10) performance of the Company's pension plan assets, (11) inflation, (12) changes in environmental regulations, (13) volatility in commodity natural gas markets and (14) the other risks and uncertainties described from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements.