SCANA Natural Gas Pipeline Companies Finalize Merger; New company begins official operations Nov. 1
Public Affairs Contact:
Robin Montgomery
(800) 562-9308
rmontgomery@scana.com

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

Columbia, SC, Nov. 1, 2006…South Carolina Pipeline Corp. (SCPC) and SCG Pipeline, Inc. (SCG), wholly owned subsidiaries of SCANA Corporation (NYSE:SCG), have completed their merger and today they begin operating under the new name of Carolina Gas Transmission Corp. (CGT) as a single interstate natural gas transportation company.

The new company falls under the regulatory oversight of the Federal Energy Regulatory Commission (FERC). SCANA first announced its intention to merge these subsidiaries in June of 2004. The companies spent substantial time negotiating a settlement with their customers, which resulted in the filing of its merger application and settlement with the FERC in February 2006. Paul Fant, president and chief operating officer of the newly formed company, said the merger process took longer than anticipated, but the deliberate schedule was necessary to ensure a smooth transition for customers.

“We would like to thank our customers for their cooperation and support during the planning and implementation of this merger. Since our 2004 announcement we have worked closely with our customers to highlight the details of our plans while also helping them to prepare for the responsibilities that come with managing the purchase and transportation of their own gas supplies,” he said. “The comfort level of our customers is now at a point where we’re all ready to move the process forward.

“This merger gives large natural gas users the flexibility to manage their own purchasing strategies, which is something many of them have expressed an interest in through the years. As an interstate pipeline with access to major sources of supply, CGT is well positioned to meet the growing needs of our existing customers as well as expand to meet the needs of new markets.”

Prior to the merger, SCPC provided a “bundled” natural gas procurement and delivery service to customers. It purchased gas at supply points in the Gulf of Mexico and contracted with interstate pipelines to have that gas transported into South Carolina, where it was then sold and delivered to customers through an intrastate pipeline network of approximately 1,450 miles. SCG Pipeline, which began operation in 2003, operated as an interstate pipeline company that transported 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.