SCANA Subsidiary Files Electric Rate Increase Request
Investor Contact:
John Winn
(803) 217-9240

Media Contact:
Cathy Love
(803) 217-7701

Columbia, SC, July 1, 2004 - South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE:SCG), today filed an application with the Public Service Commission of South Carolina (PSC) requesting a 5.66 percent overall increase in retail electric base rates.

The electric rate request is largely associated with recovering construction and operating costs for SCE&G's new Jasper Electric Generating Station, which began commercial operation May 1, 2004, and mandatory environmental upgrades primarily related to Federal Clean Air Act regulations. SCE&G's rate request does not include costs associated with construction of the new backup dam at Lake Murray.

The overall 5.66 percent increase breaks down as follows: 8.8 percent for residential; 3.3 percent for small commercial; 5.0 percent for medium commercial; and 2.0 percent for large commercial and industrial.

If approved, the increase would result in an additional $7.63 per month for residential customers using 1,000 kilowatt hours of electricity. SCE&G residential customers using that amount of power currently pay $88.41 per month; thus, those bills would increase to $96.04.

The increase is based upon a 9.18 percent overall return on rate base, including an 11.75 percent return on common equity, and would produce approximately $81 million in additional annual revenues based on a test year ended March 31, 2004.

In announcing the proposed increase, SCE&G President Neville Lorick noted the company successfully met its schedule for bringing the Jasper Generating Station on line. The state-of-the-art facility will help SCE&G meet the growing demand for electricity in South Carolina, help ensure overall system reliability, and assist the Company as it works to meet requirements associated with the Clean Air Act.

"When we sought to recover costs for the first part of the Jasper Plant in 2002, we emphasized that reliability is the key driver behind this increase. Since that time, we've seen examples, such as the blackout in the Northeast, that clearly illustrate the value of growing our generation capacity and providing local power to our customers," Lorick said.

"The construction of Jasper and the re-powering of our Urquhart Generating Station (completed in 2002) return our reserve margins to levels that we're comfortable with in the event of unexpected generation or supply problems. The Jasper plant also is designed and built to high environmental and efficiency standards."

In its application, SCE&G also is seeking approval from the PSC to apply current and anticipated synthetic fuel tax credits to offset the cost of constructing the back-up dam at Lake Murray. That $275 million project, which will help ensure the safety of the dam in the event of a major earthquake, is on schedule for completion in 2005.

"We felt it was most appropriate to apply these tax credits so that we would not have to charge our customers for the construction of this federally mandated project," Lorick explained. "While most companies are keeping all of the financial benefits of their synthetic fuel tax credits, we've made them a win for our customers."

Public hearings on SCE&G's application are expected to be held by the PSC before the end of the year. If approved, new rates would go into effect in January 2005.

For additional information on SCE&G's proposed rate request, visit


SCE&G is engaged in the generation, transmission, distribution and sale of electricity to more than 574,000 customers in 24 counties in portions of central, southern and southwestern South Carolina. The company also provides natural gas service to approximately 279,000 customers in 33 counties in the state.

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