PSNC Energy announces increase in "cost of gas" component

Media Contacts:
Raleigh/Durham
Angie Townsend
1-919-836-2321
adtownsend@scana.com

Gastonia/Asheville
Jodie Roberts-Smith
1-704-834-6427
jroberts-smith@scana.com


Gastonia, N.C., June 27, 2007
-- PSNC Energy, a wholly owned subsidiary of SCANA Corporation (NYSE: SCG), announced today that the North Carolina Utilities Commission has approved an increase to the purchased gas component of the company’s retail natural gas rates, effective with July bills. The increase will raise the company’s residential rate by 11 percent, taking it from approximately $1.18 per therm to approximately $1.31 per therm. This increase translates into a monthly increase of approximately $2.50 based on average natural gas use of 20 therms per month during the summer.

“We haven’t had to raise our ‘cost of gas’ component since late 2005 following Hurricane Katrina,” said PSNC Energy President and COO Rusty Harris. “In fact, we were able to lower our ‘cost of gas’ this past January, but natural gas wholesale prices have gone up since then, and we’ve reached a point where we have to adjust for those higher costs.”

PSNC Energy does not earn a profit on the “cost of gas” component of its natural gas rates. The adjustment is passed directly to customers in accordance with state regulations so that the company can recover its costs associated with purchasing the fuel.

PSNC Energy, headquartered in Gastonia, N.C., is franchised to serve a 28-county service area in North Carolina. The utility distributes natural gas to approximately 446,000 customers in 96 cities and communities, including the Raleigh, Durham, and Chapel Hill areas in the north central part of the state; the Concord, Statesville, Gastonia, and Forest City areas in the Piedmont; and the Asheville, Hendersonville, Brevard, and Sylva areas in the western part of the state. More information about PSNC Energy is available through the company’s web site at http://www.psncenergy.com/.

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. The company serves approximately 630,000 electric customers in South Carolina and more than 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 www.scana.com.