South Carolina Electric & Gas Company Announces Debt Refinancing
Investor Contacts:
Bryan Hatchell
(803) 217-7458

Betty Best
(803) 217-7587

Columbia, SC, January 7, 2008 --- South Carolina Electric & Gas Company (SCE&G) announced today that it sold, in a negotiated offering, $250 million principal amount of its First Mortgage Bonds, 6.05 percent series due January 15, 2038. The 30-year bonds were priced to SCE&G at 99.028 percent, and are initially being offered to the public at 99.903 percent to yield 6.057 percent to maturity. BNY Capital Markets, Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Incorporated acted as joint book-running managers and Mizuho Securities USA Inc. acted as co-manager for the transaction.

These bonds have been offered in connection with a distribution by SCE&G, which intends to apply the net proceeds from the sale of the bonds toward the repayment of short-term debt and for general corporate purposes.

It is anticipated that the new First Mortgage Bonds will be issued on January 14, 2008. The transaction is subject to normal closing conditions.

Copies of a written prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, relating to the offering of these bonds may be obtained by contacting Morgan Stanley & Co. Incorporated, 180 Varick Street (Attention: Prospectus Department), New York, New York 10014.

South Carolina Electric & Gas Company is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity and in the purchase, sale and transport at retail of natural gas in portions of South Carolina.