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

Investor Contact:
John Winn
(803) 217-9240

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


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