SCANA Subsidiary Reaches Settlement Agreement with PSC Staff in Electric Rate Case
Media Contact:
Cathy Love
(803) 217-7777

Investor Contact:
John Winn
(803) 217-9240

Columbia, SC, October 18, 2004 - South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE: SCG), announced today that it has entered into a stipulation and settlement agreement with the Staff of the South Carolina Public Service Commission in connection with SCE&G's pending retail electric rate increase application that was filed on July 1, 2004. The settlement agreement is subject to review and approval by the South Carolina Public Service Commission following a public hearing that begins on November 1, 2004. The settlement agreement covers all of the major issues addressed in SCE&G's application and, if approved, would result in an overall increase in retail electric revenues of approximately $51.1 million (3.57%) based on an adjusted test year ended March 31, 2004, or about 63% of the $81.2 million (5.66%) overall revenue increase requested by the company in its application. The settlement agreement establishes an allowed return on common equity in a range of 11.4% to 10.4%, with rates to be set based on the midpoint of that range (10.9%).