SCANA Companies File FERC Application, Merger Plans for Natural Gas Transportation Subsidiaries Moving Forward
Public Affairs Contact:
Robin Montgomery
(843) 576-8649
rmontgomery@scana.com

Investor Contact:
John Winn
(803) 217-9240
jwinn@scana.com


Columbia, SC, February 27, 2006 - South Carolina Pipeline Corp. (SCPC) and SCG Pipeline, Inc. (SCG), wholly owned subsidiaries of SCANA Corporation (NYSE:SCG), today filed an application with the Federal Energy Regulatory Commission (FERC) to merge into a single interstate natural gas transportation company. Since announcing plans for the merger, company representatives have been meeting with customers and working through details of the plan.

SCPC President and Chief Operating Officer Paul Fant said, "We had hoped to reach this point sooner, but we weren't willing to rush the process. We wanted to make sure we had met with customers and considered all details that would be necessary in making the transition.

"The application we filed today is a major step towards finalizing the merger in the months ahead."

Fant said in its application to the FERC, SCANA is requesting to have the merged company in service prior to the 2006-2007 winter heating season. The new company -- Carolina Gas Transmission Corp. (CGT) -- would fall under the regulatory oversight of the FERC.

Fant added that the evolving environment in today's natural gas marketplace and changes in the regulatory landscape at the federal level are the driving factors behind SCANA's decision to combine the pipeline companies. Under the merger application, SCPC and SCG would operate as a single interstate, transportation-only pipeline company that sells its pipeline capacity, but no longer sells natural gas. This would allow large natural gas users to manage their own purchasing strategies.

SCPC currently provides a "bundled" natural gas procurement and delivery service. It buys gas at supply points in the Gulf of Mexico, contracts with interstate pipelines to have it transported into South Carolina, and then sells and delivers natural gas to customers through its approximately 1,400 -mile intrastate pipeline network. SCG Pipeline, which began operation in 2003, is an interstate pipeline company that transports gas in Georgia and South Carolina.

SCANA Corporation, a Fortune 500 company headquartered in Columbia, South Carolina, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. Information about SCANA and its businesses is available on the Company's web site at www.scana.com.


SAFE HARBOR STATEMENT

Statements included in this press release which are not statements of historical fact are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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) regulatory actions or changes in the utility and nonutility regulatory environment, (3) current and future litigation, (4) changes in the economy, especially in areas served by the Company's subsidiaries, (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets, (6) growth opportunities for the Company's regulated and diversified subsidiaries, (7) the results of financing efforts, (8) changes in the Company's accounting policies, (9) weather conditions, especially in areas served by the Company's subsidiaries, (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 United States Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements.