SCANA Management Reviews Financial and Operational Highlights, Reaffirms 2006 Earnings Guidance at Analyst Meeting
Contacts:
John Winn
(803) 217-9240
jwinn@scana.com  

Bryan Hatchell
(803) 217-7458
bhatchell@scana.com  


May 16, 2006, Columbia, SC, - At a meeting with security analysts held today in New York, the management of SCANA Corporation (NYSE: SCG) reviewed the Company's business strategy, provided an update on recent financial and operating results, and reaffirmed the Company's previous earnings guidance for 2006.

Bill Timmerman, chairman and chief executive officer, and Jimmy Addison, senior vice president and chief financial officer, told analysts that the Company's focused commitment to its mission, vision and values has been a major contributor to recent financial and operational successes. They emphasized that the Company's future results are directly linked to achieving the four critical success factors that are an integral part of the Company's long-term growth strategy – employee development, excellence in customer service, cost effective operations and profitable growth.

Addison reviewed the Company's first quarter 2006 financial results and discussed cash flow and capital expenditure projections for 2006 – 2008. He also reiterated the Company's commitment to reduce overall leverage. "We expect to be cash flow positive after capital expenditures and dividends in each of the next three years. That additional internal cash, combined with the new equity we expect from sales of common stock through our stock plans this year and the fact that we project no new money debt issuances during the next few years, will help reduce the debt component of our total capitalization to 50-52 percent in 2007."

He also provided an update on the synthetic fuel tax credits that are being applied to offset the cost of the Lake Murray Back-up Dam project. "Through the end of 2005, we had recovered approximately 70 percent of the total cost of this project for the benefit of our customers, leaving an un-recovered balance of only about $90 million. Based on the high cost of oil during the first quarter and our projection of oil prices for the remainder of 2006, we recorded a 57 percent phase-down of the total synthetic fuel tax credits that would have been available during the quarter. If oil prices remain high and we are not able to recover the entire cost of the back-up dam project, we have the option of returning to the South Carolina Public Service Commission to propose an alternative method of recovery for those costs."

With regard to pending regulatory activity, Addison reported that the North Carolina Utilities Commission has scheduled a public hearing in Raleigh, North Carolina beginning August 22 relating to PSNC Energy's application for a $21 million net increase in retail natural gas rates. He added that this is the first request for an increase in base rates at PSNC since 1998. He also noted that the Federal Energy Regulatory Commission is expected to rule on the Company's request to merge its two natural gas transmission companies prior to the 2006-2007 winter heating season. "We believe the merger of these natural gas pipeline companies will help stabilize future earnings and broaden opportunities for growth in this segment of our business."

On the topic of future electric generating needs, Addison discussed the Company's decision, in partnership with Santee Cooper, to begin work toward filing a joint application with the Nuclear Regulatory Commission (NRC) for a combined construction and operating license for two new nuclear units. The company has selected the Westinghouse AP1000 technology and would locate the units adjacent to the V.C. Summer Nuclear Station near Jenkinsville, South Carolina. As with the Summer Station, South Carolina Electric & Gas Company would be the operator and the two companies would share the ownership and output. "Our current timeline calls for us to file the license application in the latter part of 2007," said Addison. "Following a roughly three-year review period, the NRC could issue the license in 2010. At that time, we would make a go/no go decision on constructing the new unit which, if built, would have a projected in service date around 2015. Although a final decision to build the plant is still three to four years away and could be influenced by many factors, our current analysis indicates that nuclear power is very cost competitive with other options for base load generation, including plants fired by coal or natural gas, and would result in less impact to the environment."

Finally, Addison reaffirmed the Company's previous earnings guidance for 2006 of $2.80 to $2.95 per share. He noted that this guidance excludes earnings of $.05 cents per share in the first quarter representing the cumulative effect of a change in accounting for equity based compensation resulting from the Company's adoption of Statement of Financial Accounting Standards Number 123 (R) on January 1, 2006. "Going forward, our goal is to achieve average annual earnings growth of 4 - 6 percent over the next 3 - 5 years. With respect to dividends, our goal is to increase the annual cash dividend on common stock at a rate that is consistent with that earnings growth while maintaining a payout ratio of 55 – 60 percent."

Webcast

Today's meeting was webcast live over the Internet. A replay of the webcast and related presentation materials will be accessible through May 30, 2006, at the Company's web site at www.scana.com.

Profile

SCANA Corporation, a Fortune 500 company headquartered in Columbia, South Carolina, is a registered holding company engaged, through subsidiaries, in regulated electric and natural gas utility operations and other energy-related businesses. The Company serves approximately 613,000 electric customers in South Carolina and more than 1.2 million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA Corporation and its businesses is available on the Company's web site at www.scana.com.

Safe Harbor Statement

Statements included in this press release which are not statements of historical fact are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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) regulatory actions or changes in the utility and nonutility regulatory environment, (3) current and future litigation, (4) changes in the economy, especially in areas served by the Company's subsidiaries, (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets, (6) growth opportunities for the Company's regulated and diversified subsidiaries, (7) the results of financing efforts, (8) changes in accounting principles, (9) weather conditions, especially in areas served by the Company's subsidiaries, (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 United States Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements.