----

----

|  x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|---------------------------------------------------------------------------------------------------|

|  o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|----------------------------------------------------------------------------------------------------|

| Commission       | Registrant,      State of Incorporation,                   | I.R.S.      Employer    |
|------------------|------------------------------------------------------------|-------------------------|
| File      Number | Address      and Telephone Number                          | Identification      No. |
| 1-8809           | SCANA      Corporation                                     | 57-0784499              |
|             | (a      South Carolina corporation)                        |                    |
|             | 1426      Main Street, Columbia, South Carolina 29201 |                    |
|             | (803)      217-9000                                        |                    |
|             |                                                       |                    |
| 1-3375           | South      Carolina Electric & Gas Company             | 57-0248695              |
|             | (a      South Carolina corporation)                        |                    |
|             | 1426      Main Street, Columbia, South Carolina 29201 |                    |
|             | (803)      217-9000                                        |                    |

| SCANA      Corporation                         | Large accelerated      filer x   | Accelerated filer      o | Non-accelerated      filer o |
|------------------------------------------------|----------------------------------|--------------------------|------------------------------|
|                                           | Smaller reporting      company o |                     |                         |
| South      Carolina Electric & Gas Company | Large accelerated      filer o   | Accelerated filer      o | Non-accelerated      filer x |
|                                           | Smaller reporting      company o |                     |                         |

|                                                              | Description      of          | Shares      Outstanding                                                                                     |
|-------------------------------------------------------------------|------------------------------|-------------------------------------------------------------------------------------------------------------|
| Registrant                                                        | Common      Stock            | at      July 31, 2008                                                                                       |
| SCANA      Corporation                                            |  Without      Par Value |                 116,981,276 |
| South      Carolina Electric & Gas Company                    | $4.50      Par Value         |               40,296,147 (a)                                        |
| (a)Owned      beneficially and of record by SCANA    Corporation. |                         |

----

----

|                                                                  | Page                                                             |
|-----------------------------------------------------------------------|------------------------------------------------------------------|
|  Cautionary      Statement Regarding Forward-Looking Information |  3                                                          |
|                                                                  |                                                             |
| PART I.      FINANCIAL INFORMATION                               |                                                             |
|                                                                  |                                                             |
| SCANA      Corporation Financial Section                              | 4                                                                |
|                                                                  | Item      1.                                                     | Financial      Statements | 5 |
|                                                                  |                                                             | Condensed      Consolidated Balance Sheets | 5 |
|                                                                  |                                                             | Condensed      Consolidated Statements of Income | 7 |
|                                                                  |                                                             | Condensed      Consolidated Statements of Cash Flows | 8 |
|                                                                  |                                                             | Condensed      Consolidated Statements of Comprehensive Income | 9 |
|                                                                  |                                                             | Notes      to Condensed Consolidated Financial Statements | 10 |
|                                                                  | Item      2.                                                     | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations | 21 |
|                                                                  | Item      3.                                                     | Quantitative      and Qualitative Disclosures About Market Risk | 27 |
|                                                                  | Item      4.                                                     | Controls      and Procedures | 28 |
|                                                                  |
| South      Carolina Electric & Gas Company Financial Section      | 29                                                               |
|                                                                  | Item      1.                                                     | Financial      Statements | 29 |
|                                                                  |                                                             | Condensed      Consolidated Balance Sheets | 30 |
|                                                                  |                                                             | Condensed      Consolidated Statements of Income | 32 |
|                                                                  |                                                             | Condensed      Consolidated Statements of Cash Flows | 33 |
|                                                                  |                                                             | Notes      to Condensed Consolidated Financial Statements | 34 |
|                                                                  | Item      2.                                                     | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations | 43 |
|                                                                  | Item      3.                                                     | Quantitative      and Qualitative Disclosures About Market Risk | 47 |
|                                                                  | Item      4T.                                                    | Controls      and Procedures | 48 |
|                                                                  |                                                             |
| PART      II. OTHER INFORMATION                                       | 49                                                               |
|                                                                  |                                                             |   |
| Item      1.                                                          | Legal      Proceedings                                           | 49 |
|                                                                  |                                                             |   |
| Item      2.                                                          | Unregistered      Sales of Equity Securities and Use of Proceeds | 49 |
|                                                                  |                                                             |   |
| Item      4.                                                          | Submission      of Matters to a Vote of Security Holders         | 50 |
|                                                                  |                                                             |   |
| Item      6.                                                          | Exhibits                                                         | 50 |
|                                                                  |                                                             |   |
| Signatures                                                            | 51                                                               |
|                                                                  |                                                             |   |
| Exhibit      Index                                                    | 52                                                               |

|                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   | June      30, |   |   | December      31, |   |
| Millions      of dollars                                                                              |   | 2008 |   |   | 2007 |   |
| Assets                                                                                                |   |   |   |
| Utility      Plant In Service                                                                         |   | $ | 10,014 |   |   | $ | 9,807 |   |
| Accumulated      Depreciation and Amortization                                                        |   |   | (3,067 | ) |   |   | (2,981 | ) |
| Construction      Work in Progress                                                                    |   |   | 597 |   |   |   | 400 |   |
| Nuclear      Fuel, Net of Accumulated Amortization                                                    |   |   | 81 |   |   |   | 82 |   |
| Acquisition      Adjustments                                                                          |   |   | 230 |   |   |   | 230 |   |
| Utility      Plant, Net                                                                               |   |   | 7,855 |   |   |   | 7,538 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Nonutility      Property and Investments:                                                             |   |   |   |   |   |   |   |   |
|        Nonutility property, net of accumulated depreciation of $86 and $77             |   |   | 154 |   |   |   | 131 |   |
|        Assets held in trust, net-nuclear decommissioning                                         |   |   | 60 |   |   |   | 62 |   |
|        Other investments                                                                         |   |   | 80 |   |   |   | 82 |   |
|        Nonutility Property and Investments, Net                                                  |   |   | 294 |   |   |   | 275 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Current      Assets:                                                                                  |   |   |   |   |   |   |   |   |
|        Cash and cash equivalents                                                                 |   |   | 150 |   |   |   | 134 |   |
|        Receivables, net of allowance for uncollectible accounts of $14 and $16         |   |   | 591 |   |   |   | 641 |   |
|        Receivables - affiliated companies                                                        |   |   | - |   |   |   | 29 |   |
|        Inventories (at average cost):                                                            |   |   |   |   |   |   |   |   |
|          Fuel and gas supply                                                           |   |   | 220 |   |   |   | 286 |   |
|          Materials and supplies                                                        |   |   | 108 |   |   |   | 107 |   |
|          Emission allowances                                                           |   |   | 24 |   |   |   | 33 |   |
|        Prepayments and other                                                                     |   |   | 177 |   |   |   | 62 |   |
|        Deferred income taxes                                                                     |   |   | - |   |   |   | 9 |   |
|        Total Current Assets                                                                      |   |   | 1,270 |   |   |   | 1,301 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Deferred      Debits and Other Assets:                                                                |   |   |   |   |   |   |   |   |
|        Pension asset, net                                                                        |   |   | 236 |   |   |   | 224 |   |
|        Regulatory assets                                                                         |   |   | 749 |   |   |   | 712 |   |
|        Other                                                                                     |   |   | 114 |   |   |   | 115 |   |
|        Total Deferred Debits and Other Assets                                                    |   |   | 1,099 |   |   |   | 1,051 |   |
| Total                                                                                                 |   | $ | 10,518 |   |   | $ | 10,165 |   |

|                                                         |   | June      30, |   |   | December      31, |   |
|------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Millions      of dollars                                               |   | 2008          |   |   | 2007              |   |
| Capitalization      and Liabilities                                    |   |          |   |   |              |   |
| Shareholders’      Investment:                                   |   |          |   |   |              |   |
|        Common equity                                              |   | $             | 3,035  |   |              | $      | 2,960 |   |
|        Preferred stock (Not subject to purchase or sinking funds) |   |          | 106    |   |              |   | 106 |   |
|        Total Shareholders’ Investment                       |   |          | 3,141  |   |              |   | 3,066 |   |
| Preferred      Stock, net (Subject to purchase or sinking funds)       |   |          | 7      |   |              |   | 7 |   |
| Long-Term      Debt, net                                               |   |          | 3,428  |   |              |   | 2,879 |   |
|        Total Capitalization                                       |   |          | 6,576  |   |              |   | 5,952 |   |
|                                                                   |   |          |   |   |              |   |   |   |
| Current      Liabilities:                                              |   |          |   |   |              |   |   |   |
|        Short-term borrowings                                      |   |          | 328    |   |              |   | 627 |   |
|        Current portion of long-term debt                          |   |          | 259    |   |              |   | 233 |   |
|        Accounts payable                                           |   |          | 414    |   |              |   | 401 |   |
|        Accounts payable - affiliated companies                    |   |          | -      |   |              |   | 27 |   |
|        Customer deposits and customer prepayments                 |   |          | 77     |   |              |   | 85 |   |
|        Taxes accrued                                              |   |          | 70     |   |              |   | 156 |   |
|        Interest accrued                                           |   |          | 65     |   |              |   | 51 |   |
|        Dividends declared                                         |   |          | 56     |   |              |   | 53 |   |
|        Other                                                      |   |          | 62     |   |              |   | 88 |   |
|        Total Current Liabilities                                  |   |          | 1,331  |   |              |   | 1,721 |   |
|                                                                   |   |          |   |   |              |   |   |   |
| Deferred      Credits and Other Liabilities:                           |   |          |   |   |              |   |   |   |
|        Deferred income taxes, net                                 |   |          | 983    |   |              |   | 944 |   |
|        Deferred investment tax credits                            |   |          | 104    |   |              |   | 104 |   |
|        Asset retirement obligations                               |   |          | 316    |   |              |   | 307 |   |
|        Postretirement benefits                                    |   |          | 188    |   |              |   | 185 |   |
|        Regulatory liabilities                                     |   |          | 896    |   |              |   | 830 |   |
|        Other                                                      |   |          | 124    |   |              |   | 122 |   |
|        Total Deferred Credits and Other Liabilities               |   |          | 2,611  |   |              |   | 2,492 |   |
|                                                                   |   |          |   |   |              |   |   |   |
| Commitments      and Contingencies (Note 5)                            |   |          | -      |   |              |   | - |   |
| Total                                                                  |   | $             | 10,518 |   |              | $      | 10,165 |   |

|                                                                        | Three      Months Ended |   |   | Six      Months Ended |   |
|-----------------------------------------------------------------------------|-------------------------|--------|--------|-----------------------|--------|
|                                                                        | June      30,           |   |   | June      30,         |   |
| Millions      of dollars, except per share amounts                          |                    | 2008   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |
| Operating      Revenues:                                                    |                    |   |   |                  |   |   |   |   |   |
|   Electric                                                        |                    | $      | 576    |                  | $      | 470 |   |   | $ | 1,064 |   | $ | 913 |   |
|        Gas - regulated                                                 |                    |   | 210    |                  |   | 191 |   |   |   | 692 |   |   | 627 |   |
|        Gas - nonregulated                                              |                    |   | 432    |                  |   | 346 |   |   |   | 996 |   |   | 830 |   |
|        Total Operating Revenues                                        |                    |   | 1,218  |                  |   | 1,007 |   |   |   | 2,752 |   |   | 2,370 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses:                                                    |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
|        Fuel used in electric generation                                |                    |   | 227    |                  |   | 153 |   |   |   | 404 |   |   | 309 |   |
|        Purchased power                                                 |                    |   | 16     |                  |   | 7 |   |   |   | 21 |   |   | 18 |   |
|        Gas purchased for resale                                        |                    |   | 555    |                  |   | 447 |   |   |   | 1,393 |   |   | 1,174 |   |
|        Other operation and maintenance                                 |                    |   | 167    |                  |   | 160 |   |   |   | 344 |   |   | 334 |   |
|        Depreciation and amortization                                   |                    |   | 79     |                  |   | 86 |   |   |   | 159 |   |   | 177 |   |
|        Other taxes                                                     |                    |   | 43     |                  |   | 38 |   |   |   | 87 |   |   | 79 |   |
|        Total Operating Expenses                                        |                    |   | 1,087  |                  |   | 891 |   |   |   | 2,408 |   |   | 2,091 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Operating      Income                                                       |                    |   | 131    |                  |   | 116 |   |   |   | 344 |   |   | 279 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                                                |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
|        Other income                                                    |                    |   | 17     |                  |   | 18 |   |   |   | 37 |   |   | 48 |   |
|        Other expenses                                                  |                    |   | (10    | )                     |   | (8 | ) |   |   | (20 | ) |   | (26 | ) |
|   Interest      charges, net of allowance for borrowed funds      |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
|          used during construction of  $4, $3, $7 and $5 |                    |   | (54    | )                     |   | (51 | ) |   |   | (107 | ) |   | (103 | ) |
|        Preferred dividends of subsidiary                               |                    |   | (2     | )                     |   | (2 | ) |   |   | (4 | ) |   | (4 | ) |
|   Allowance      for equity funds used during construction        |                    |   | 2      |                  |   | 1 |   |   |   | 4 |   |   | 1 |   |
|          Total Other Expense                                 |                    |   | (47    | )                     |   | (42 | ) |   |   | (90 | ) |   | (84 | ) |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Income      Before Income Tax Expense and                                   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
|    Earnings      (Losses) from Equity Method Investments     |                    |   | 84     |                  |   | 74 |   |   |   | 254 |   |   | 195 |   |
| Income      Tax Expense                                                     |                    |   | 29     |                  |   | 17 |   |   |   | 91 |   |   | 48 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Income      Before Earnings (Losses) from Equity    Method Investments |                    |   | 55     |                  |   | 57 |   |   |   | 163 |   |   | 147 |   |
| Earnings      (Losses) from Equity Method Investments                       |                    |   | 2      |                  |   | (2 | ) |   |   | 3 |   |   | (7 | ) |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Net      Income                                                             |                    | $      | 57     |                  | $      | 55 |   |   | $ | 166 |   | $ | 140 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted Earnings Per Share of Common Stock                   |                    | $      | .48    |                  | $      | .47 |   |   | $ | 1.42 |   | $ | 1.20 |   |
| Weighted      Average Shares Outstanding (millions)                         |                    |   | 116.7  |                  |   | 116.7 |   |   |   | 116.7 |   |   | 116.7 |   |
|                                                                        |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.              |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                      | Six      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
|                                                                                                                                                      | June      30,         |   |
| Millions      of dollars                                                                                                                                  |                  | 2008   |   | 2007 |   |
| Cash      Flows From Operating Activities:                                                                                                                |                  |   |   |
| Net      income                                                                                                                                           |                  | $      | 166 |   | $ | 140 |   |
| Adjustments      to reconcile net income to net cash provided from operating      activities:                                                             |                  |   |   |   |   |   |   |
|        Excess losses from equity method investments, net of      distributions                                                                       |                  |   | - |   |   | 10 |   |
|        Depreciation and amortization                                                                                                                 |                  |   | 159 |   |   | 182 |   |
|        Amortization of nuclear fuel                                                                                                                  |                  |   | 5 |   |   | 9 |   |
|   Allowance      for equity funds used during construction                                                                                      |                  |   | (4 | ) |   | - |   |
|        Carrying cost recovery                                                                                                                        |                  |   | (3 | ) |   | (1 | ) |
|   Cash      provided (used) by changes in certain assets and      liabilities:                                                                  |                  |   |   |   |   |   |   |
|           Receivables, net                                                                                                            |                  |   | 78 |   |   | 158 |   |
|           Inventories                                                                                                                 |                  |   | 45 |   |   | 10 |   |
|           Prepayments and other                                                                                                       |                  |   | (102 | ) |   | 8 |   |
|           Pension asset                                                                                                               |                  |   | (8 | ) |   | (12 | ) |
|           Other regulatory assets                                                                                                     |                  |   | 35 |   |   | 22 |   |
|           Deferred income taxes, net                                                                                                  |                  |   | 48 |   |   | 4 |   |
|           Regulatory liabilities                                                                                                      |                  |   | 47 |   |   | 10 |   |
|           Postretirement benefits                                                                                                     |                  |   | 3 |   |   | 3 |   |
|           Accounts payable                                                                                                            |                  |   | 17 |   |   | (112 | ) |
|           Taxes accrued                                                                                                               |                  |   | (86 | ) |   | (32 | ) |
|      Interest      accrued                                                                                                       |                  |   | 14 |   |   | - |   |
|        Changes in fuel adjustment clauses                                                                                                            |                  |   | (62 | ) |   | (13 | ) |
|        Changes in other assets                                                                                                                       |                  |   | (8 | ) |   | 14 |   |
|        Changes in other liabilities                                                                                                                  |                  |   | (17 | ) |   | (46 | ) |
| Net      Cash Provided From Operating Activities                                                                                                          |                  |   | 327 |   |   | 354 |   |
| Cash      Flows From Investing Activities:                                                                                                                |                  |   |   |   |   |   |   |
| Utility      property additions and construction expenditures                                                                                             |                  |   | (438 | ) |   | (312 | ) |
| Proceeds      from sale of assets                                                                                                                         |                  |   | 1 |   |   | 1 |   |
| Nonutility      property additions                                                                                                                        |                  |   | (23 | ) |   | (31 | ) |
| Investments                                                                                                                                               |                  |   | 2 |   |   | (10 | ) |
| Net      Cash Used For Investing Activities                                                                                                               |                  |   | (458 | ) |   | (352 | ) |
| Cash      Flows From Financing Activities:                                                                                                                |                  |   |   |   |   |   |   |
| Proceeds      from issuance of debt                                                                                                                       |                  |   | 665 |   |   | - |   |
| Repayment      of debt                                                                                                                                    |                  |   | (110 | ) |   | (31 | ) |
| Redemption/repurchase      of equity securities                                                                                                           |                  |   | - |   |   | (4 | ) |
| Dividends                                                                                                                                                 |                  |   | (109 | ) |   | (100 | ) |
| Short-term      borrowings, net                                                                                                                           |                  |   | (299 | ) |   | 22 |   |
| Net      Cash Provided From (Used For) Financing Activities                                                                                               |                  |   | 147 |   |   | (113 | ) |
| Net      Increase (Decrease) In Cash and Cash Equivalents                                                                                                 |                  |   | 16 |   |   | (111 | ) |
| Cash      and Cash Equivalents, January 1                                                                                                                 |                  |   | 134 |   |   | 201 |   |
| Cash      and Cash Equivalents, June 30                                                                                                                   |                  | $      | 150 |   | $ | 90 |   |
|  Supplemental      Cash Flow Information:                                                                                                            |                  |   |   |   |   |   |   |
|   Cash      paid for  - Interest (net of capitalized interest of $7 and      $5)                                                           |                  | $      | 90 |   | $ | 104 |   |
|                              - Income taxes |                  |   | 107 |   |   | 26 |   |
|                                                                                                                                                      |                  |   |   |   |   |   |   |
| Noncash      Investing and Financing Activities:                                                                                                          |                  |   |   |   |   |   |   |
|   Accrued      construction expenditures                                                                                                        |                  |   | 51 |   |   | 34 |   |

| See      Notes to Condensed Consolidated Financial  Statements. |
|-----------------------------------------------------------------|

|                                                                                                                                                  |                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| SCANA      CORPORATION                                                                                                                                |                    |
| CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                                                                        |                    |
| (Unaudited)                                                                                                                                           |                    |
|                                                                                                                                                  |                    |   |   |
|                                                                                                                                                  | Three      Months Ended | Six      Months Ended |   |
|                                                                                                                                                  | June      30,           | June      30, |   |
| Millions      of dollars                                                                                                                              |                    | 2008 |   | 2007 |   | 2008 |   | 2007 |   |   |
| Net      Income                                                                                                                                       |                    | $ | 57 |   | $ | 55 |   | $ | 166 |   | $ | 140 |   |   |
| Other      Comprehensive Income, net of tax:                                                                                                          |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Gains (losses) on hedging activities:                                                                                               |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Unrealized      holding gains (losses) arising during period, net                                                 |                    |   | 14 |   |   | (6 | ) |   | 20 |   |   | 1 |   |   |
|       Realized      loss on derivatives designated as cash flow hedges                                                  |                    |   | - |   |   |   |   |   | (3 | ) |   |   |   |   |
|       Reclassification      adjustment for (gains) losses included in net income                                        |                    |   | (4 | ) |   | - |   |   | (1 | ) |   | 11 |   |   |
| Total Comprehensive Income (1)                                                                                                                        |                    | $ | 67 |   | $ | 49 |   | $ | 182 |   | $ | 152 |   |   |
|                                                                                                                                             |
| (1)      Accumulated other comprehensive loss totaled $6.5 million as of June      30, 2008 and $22.3 million as of December 31,      2007. |
|                                                                                                                                                  |
|                                                                                                                                             |
| See      Notes to Condensed Consolidated Financial      Statements.                                                                              |

|                                                                              |   | June      30, |   | December      31, |   |
|-----------------------------------------------------------------------------------|--------|---------------|--------|-------------------|--------|
| Millions      of dollars                                                          |   | 2008          |   | 2007              |   |
| Regulatory      Assets:                                                           |   |          |   |              |   |
| Accumulated      deferred income taxes                                            |   | $             | 161    |              | $      | 161 |   |
| Under-collections      – electric fuel and gas cost adjustment clauses |   |          | 71     |              |   | 45 |   |
| Environmental      remediation costs                                              |   |          | 28     |              |   | 26 |   |
| Asset      retirement obligations and related funding                             |   |          | 284    |              |   | 274 |   |
| Franchise      agreements                                                         |   |          | 50     |              |   | 52 |   |
| Deferred      employee benefit plan costs                                         |   |          | 116    |              |   | 120 |   |
| Other                                                                             |   |          | 39     |              |   | 34 |   |
| Total      Regulatory Assets                                                      |   | $             | 749    |              | $      | 712 |   |

| Regulatory      Liabilities:                                                     |   |   |   |   |   |
|----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Accumulated      deferred income taxes                                           |   | $      | 33     |   | $      | 35 |   |
| Over-collections      – electric fuel and gas cost adjustment clauses |   |   | 74     |   |   | 19 |   |
| Other      asset removal costs                                                   |   |   | 668    |   |   | 643 |   |
| Storm      damage reserve                                                        |   |   | 51     |   |   | 49 |   |
| Planned      major maintenance                                                   |   |   | 3      |   |   | 15 |   |
| Monetization      of bankruptcy claim                                            |   |   | 44     |   |   | 45 |   |
| Other                                                                            |   |   | 23     |   |   | 24 |   |
| Total      Regulatory Liabilities                                                |   | $      | 896    |   | $      | 830 |   |

|                                    |   | Pension      Benefits |   | Other      Postretirement Benefits |   |
|-----------------------------------------|--------|-----------------------|--------|------------------------------------|--------|
| Millions      of dollars                |   | 2008                  |   | 2007                               |   | 2008 |   | 2007 |   |
| Three      months ended June 30,        |   |                  |   |                               |   |   |   |   |   |
| Service      cost                       |   | $                     | 3.9    |                               | $      | 3.5 |   | $ | 1.1 |   | $ | 1.2 |   |
| Interest      cost                      |   |                  | 10.9   |                               |   | 10.4 |   |   | 3.1 |   |   | 3.0 |   |
| Expected      return on assets          |   |                  | (20.5  | )                                  |   | (20.1 | ) |   | - |   |   | - |   |
| Prior      service cost amortization    |   |                  | 1.8    |                               |   | 1.7 |   |   | 0.3 |   |   | 0.3 |   |
| Transition      obligation amortization |   |                  | -      |                               |   | - |   |   | 0.2 |   |   | 0.2 |   |
| Amortization      of actuarial loss     |   |                  | -      |                               |   | - |   |   | - |   |   | 0.3 |   |
| Net      periodic benefit (income) cost |   | $                     | (3.9   | )                                  | $      | (4.5 | ) | $ | 4.7 |   | $ | 5.0 |   |

|                                    |   | Pension      Benefits |   | Other      Postretirement Benefits |   |
|-----------------------------------------|--------|-----------------------|--------|------------------------------------|--------|
| Millions      of dollars                |   | 2008                  |   | 2007                               |   | 2008 |   | 2007 |   |
| Six      months ended June 30,          |   |                  |   |                               |   |   |   |   |   |
| Service      cost                       |   | $                     | 7.8    |                               | $      | 7.0 |   | $ | 2.2 |   | $ | 2.4 |   |
| Interest      cost                      |   |                  | 21.8   |                               |   | 20.7 |   |   | 6.1 |   |   | 6.0 |   |
| Expected      return on assets          |   |                  | (40.9  | )                                  |   | (40.2 | ) |   | - |   |   | - |   |
| Prior      service cost amortization    |   |                  | 3.5    |                               |   | 3.4 |   |   | 0.6 |   |   | 0.6 |   |
| Transition      obligation amortization |   |                  | -      |                               |   | - |   |   | 0.4 |   |   | 0.4 |   |
| Amortization      of actuarial loss     |   |                  | -      |                               |   | - |   |   | - |   |   | 0.6 |   |
| Net      periodic benefit (income) cost |   | $                     | (7.8   | )                                  | $      | (9.1 | ) | $ | 9.3 |   | $ | 10.0 |   |

|                                       | Fair      Value Measurements at June 30, 2008 Using                     |
|--------------------------------------------|-------------------------------------------------------------------------|
|    Millions      of dollars | Quoted      Prices in Active Markets for Identical Assets(Level      1) | Significant      Other Observable Inputs(Level      2) | Significant      Unobservable Inputs(Level      3) |
| Assets:                                    |                                                                    |   |   |
| Available      for sale securities         | $3                                                                      |   - | - |
| Derivative      instruments                | 81                                                                      | $1 | - |
|                                       |                                                                    |   |   |
| Liabilities:                               |                                                                    |   |   |
| Derivative      instruments                | 73                                                                      |   8 | - |
|                                       |                                                                    |   |   |

|                                       | External | Intersegment | Operating          | Net                | Segment |
|--------------------------------------------|----------|--------------|--------------------|--------------------|---------|
| Millions      of dollars                   | Revenue  | Revenue      | Income      (Loss) | Income      (Loss) | Assets  |
| Three      Months Ended June 30, 2008 |     |         |               |               |    |   |   |   |   |   |   |   |   |   |   |
| Electric      Operations                   |     | $            | 576                |               | $       | 3 |   | $ | 129 |   |   | n/a |   |   |   |
| Gas      Distribution                      |     |         | 208                |               |    | - |   |   | - |   |   | n/a |   |   |   |
| Gas      Transmission                      |     |         | 2                  |               |    | 9 |   |   | 4 |   |   | n/a |   |   |   |
| Retail      Gas Marketing                  |     |         | 102                |               |    | - |   |   | n/a |   | $ | (1 | ) |   |   |
| Energy      Marketing                      |     |         | 330                |               |    | 98 |   |   | n/a |   |   | - |   |   |   |
| All      Other                             |     |         | 8                  |               |    | 90 |   |   | n/a |   |   | (3 | ) |   |   |
| Adjustments/Eliminations                   |     |         | (8                 | )                  |    | (200 | ) |   | (2 | ) |   | 61 |   |   |   |
| Consolidated      Total                    |     | $            | 1,218              |               | $       | - |   | $ | 131 |   | $ | 57 |   |   |   |

| Six      Months Ended June 30, 2008 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations            |   | $      | 1,064  |   | $      | 6      |   | $      | 226    |   |   |   |   | $      | 6,119  |   |
| Gas      Distribution               |   |   | 688    |   |   | -      |   |   | 77     |   |   |   |   |   | 1,928  |   |
| Gas      Transmission               |   |   | 4      |   |   | 20     |   |   | 9      |   |   |   |   |   | 312    |   |
| Retail      Gas Marketing           |   |   | 367    |   |   | -      |   |   | n/a    |   | $      | 21     |   |   | 148    |   |
| Energy      Marketing               |   |   | 629    |   |   | 168    |   |   | n/a    |   |   | -      |   |   | 213    |   |
| All      Other                      |   |   | 17     |   |   | 173    |   |   | n/a    |   |   | (4     | )      |   | 1,207  |   |
| Adjustments/Eliminations            |   |   | (17    | )      |   | (367   | )      |   | 32     |   |   | 149    |   |   | 591    |   |
| Consolidated      Total             |   | $      | 2,752  |   | $      | -      |   | $      | 344    |   | $      | 166    |   | $      | 10,518 |   |

| Three      Months Ended June 30, 2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations                   |   | $      | 470    |   | $      | 2      |   | $      | 110    |   |   | n/a    |   |   |   |
| Gas      Distribution                      |   |   | 189    |   |   | -      |   |   | (1     | )      |   | n/a    |   |   |   |
| Gas      Transmission                      |   |   | 2      |   |   | 9      |   |   | 4      |   |   | n/a    |   |   |   |
| Retail      Gas Marketing                  |   |   | 102    |   |   | -      |   |   | n/a    |   | $      | 2      |   |   |   |
| Energy      Marketing                      |   |   | 244    |   |   | 47     |   |   | n/a    |   |   | 1      |   |   |   |
| All      Other                             |   |   | (6     | )      |   | 83     |   |   | n/a    |   |   | (5     | )      |   |   |
| Adjustments/Eliminations                   |   |   | 6      |   |   | (141   | )      |   | 3      |   |   | 57     |   |   |   |
| Consolidated      Total                    |   | $      | 1,007  |   | $      | -      |   | $      | 116    |   | $      | 55     |   |   |   |

| Six      Months Ended June 30, 2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations            |   | $      | 913    |   | $      | 4      |   | $      | 166    |   |   | n/a    |   | $      | 5,746  |
| Gas      Distribution               |   |   | 622    |   |   | -      |   |   | 73     |   |   | n/a    |   |   | 1,801  |
| Gas      Transmission               |   |   | 5      |   |   | 20     |   |   | 9      |   |   | n/a    |   |   | 285    |
| Retail      Gas Marketing           |   |   | 343    |   |   | -      |   |   | n/a    |   | $      | 20     |   |   | 140    |
| Energy      Marketing               |   |   | 487    |   |   | 112    |   |   | n/a    |   |   | 1      |   |   | 121    |
| All      Other                      |   |   | 12     |   |   | 168    |   |   | n/a    |   |   | (9     | )      |   | 550    |
| Adjustments/Eliminations            |   |   | (12    | )      |   | (304   | )      |   | 31     |   |   | 128    |   |   | 1,019  |
| Consolidated      Total             |   | $      | 2,370  |   | $      | -      |   | $      | 279    |   | $      | 140    |   | $      | 9,662  |

|   | FOR      THE THREE AND SIX MONTHS ENDED JUNE  30, 2008 |
|--------|-------------------------------------------------------------|

|                           |   | Second      Quarter |   |   | Year      to Date |   |
|--------------------------------|--------|---------------------|--------|--------|-------------------|--------|
|  Millions      of dollars |   | 2008                |   | 2007   |              |   |  2008 |   |   | 2007 |   |
|                           |   |                |   |   |              |   |   |   |   |   |   |   |
| Earnings      per share        | $      | .48                 |   | $      | .47               |   | $ | 1.42  |   | $ | 1.20 |   |

|   | Second      Quarter |
|--------|---------------------|

|   | Year      to Date |
|--------|-------------------|

| Declaration      Date  | Dividend      Per Share |            Record Date |        Payment Date                                                                                |
|------------------------|-------------------------|-------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| February      14, 2008 | $.46                    |     March      10, 2008     |                     April 1, 2008 |
| April      24, 2008    |   .46         |     June      10, 2008      |                     July 1, 2008  |
| July      31, 2008     |   .46         |     September      10, 2008 | October      1, 2008                                                                                    |

|                                                                             |   |   | Second      Quarter |   |          | Year      to Date |   |
|----------------------------------------------------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars                                                         |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues                                                          |   | $      | 575.8               |   | 22.5          | %                 | $      | 470.0 |   | $ | 1,063.7 |   | 16.5 | % | $ | 912.7 |   |
| Less:  Fuel      used in generation                                    |   |   | 227.4               |   | 48.7          | %                 |   | 152.9 |   |   | 404.3 |   | 30.9 | % |   | 308.8 |   |
|           Purchased      power |   |   | 16.2                |   | *             |              |   | 6.6 |   |   | 20.9 |   | 16.1 | % |   | 18.0 |   |
|      Margin                                             |   | $      | 332.2               |   | 7.0           | %                 | $      | 310.5 |   | $ | 638.5 |   | 9.0 | % | $ | 585.9 |   |

|   | Second      Quarter |
|--------|---------------------|

|   | Year      to Date |
|--------|-------------------|

|                                     |   |   | Second      Quarter |   |          | Year      to Date |   |
|------------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars                 |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues                  |   | $      | 208.6               |   | 10.1          | %                 | $      | 189.5 |   | $ | 688.3 |   | 10.6 | % | $ | 622.5 |   |
| Less: Gas      purchased for resale |   |   | 150.7               |   | 13.0          | %                 |   | 133.4 |   |   | 494.1 |   | 13.1 | % |   | 436.9 |   |
|      Margin     |   | $      | 57.9                |   | 3.2           | %                 | $      | 56.1 |   | $ | 194.2 |   | 4.6 | % | $ | 185.6 |   |

|   | Second      Quarter |
|--------|---------------------|

|   | Year      to Date |
|--------|-------------------|

|                                   |   |   | Second      Quarter |   |          | Year      to Date |   |
|----------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars               |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Transportation      revenue            |   | $      | 11.9                |   | 5.3           | %                 | $      | 11.3 |   | $ | 24.8 |   | 5.5 | % | $ | 23.5 |   |
| Other      operating revenues          |   |   | -                   |   | (100.0        | )%                |   | 0.6 |   |   | - |   | (100.0 | )% |   | 1.5 |   |
|      Revenues |   | $      | 11.9                |   | -             |              | $      | 11.9 |   | $ | 24.8 |   | (0.8 | )% | $ | 25.0 |   |

|   | Second      Quarter and Year to Date |
|--------|--------------------------------------|

|   | Transportation      revenue increased primarily due to customer  growth. |
|--------|--------------------------------------------------------------------------|

|                     |   |   | Second      Quarter |   |          | Year      to Date |   |
|--------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues  |   | $      | 101.9               |   | (0.3          | )%                | $      | 102.2 |   | $ | 366.9 |   | 7.0 | % | $ | 343.0 |   |
| Net      income (loss)   |   |   | (0.5                | )      | *             |              |   | 1.4 |   |   | 21.0 |   | 6.6 | % |   | 19.7 |   |

|   | Year      to Date |
|--------|-------------------|

|                     |   |   | Second      Quarter |   |          | Year      to Date |   |
|--------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues  |   | $      | 427.9               |   | 48.6          | %                 | $      | 288.0 |   | $ | 796.0 |   | 34.2 | % | $ | 593.1 |   |
| Net      income          |   |   | 0.3                 |   | (62.5         | )%                |   | 0.8 |   |   | - |   | (100.0 | )% |   | 0.8 |   |

|   | Second      Quarter |
|--------|---------------------|

|   | Year      to Date |
|--------|-------------------|

|                                 |   |   | Second      Quarter |   |          | Year      to Date |   |
|--------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars             |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Other      operation and maintenance |   | $      | 166.7               |   | 4.1           | %                 | $      | 160.1 |   | $ | 344.0 |   | 3.0 | % | $ | 334.1 |   |
| Depreciation      and amortization   |   |   | 78.9                |   | (8.0          | )%                |   | 85.8 |   |   | 158.5 |   | (10.4 | )% |   | 176.9 |   |
| Other      taxes                     |   |   | 43.3                |   | 12.5          | %                 |   | 38.5 |   |   | 87.1 |   | 9.7 | % |   | 79.4 |   |

|   | Second      Quarter |
|--------|---------------------|

|   | Year      to Date |
|--------|-------------------|

|                                                   |   |   | Three      Months Ended |   | Six      Months Ended |   |
|--------------------------------------------------------|--------|--------|-------------------------|--------|-----------------------|--------|
| Millions      of dollars                               |   |   | June      30, 2007      |   | June      30, 2007    |   |
| Depreciation      and amortization expense             |   | $      | (7.1                    | )      | $                     | (19.1  | ) |
| Income      tax benefits:                              |   |   |                    |   |                  |   |   |
|    From      synthetic fuel tax credits |   |   | 6.8                     |   |                  | 17.7   |   |
|    From      accelerated depreciation   |   |   | 2.7                     |   |                  | 7.3    |   |
|    From      partnership losses         |   |   | 1.5                     |   |                  | 3.6    |   |
| Total      income tax benefits                         |   |   | 11.0                    |   |                  | 28.6   |   |
|                                                   |   |   |                    |   |                  |   |   |
| Losses      from Equity Method Investments             |   |   | (3.9                    | )      |                  | (9.5   | ) |
|                                                   |   |   |                    |   |                  |   |   |
| Impact      on Net Income                              |   | $      | -                       |   | $                     | -      |   |

|   Future      Value |   |   |      |      |            |   |
|-------------------------------|--------|--------|-----------|-----------|-----------------|--------|
| Millions      of dollars      | 2007   | 2008   | 2009-2010 | 2011-2012 | After      2012 | Total  |
| Plant      Costs              | $      | 21     | $         | 183       | $               | 1,095  | $ | 1,431 | $ | 2,681 | $ | 5,411 |
| Transmission      Costs       |   | -      |      | -         |            | -      |   |       2 |   |    636 |   |    638 |

| As      of June 30, 2008                                |   |  Expected      Maturity |                        |
|--------------------------------------------------------------|--------|------------------------------|-----------------------------|
|                                                         |   |                         |                        |   |   |   |
|                                                         |   |                         |                        |   |   |   | There- |   | Fair |
| Millions      of dollars                                     |   | 2008                         | 2009                        | 2010 | 2011 | 2012 | After | Total | Value |
| Long-Term      Debt Issued:                                  |   |                         |                        |   |   |   |   |   |   |
|   Fixed      Rate ($)                              |   | 120.0                        | 108.2                       |  14.8 | 619.3 | 265.5 | 2,448.1 | 3,575.9 | 3,529.3 |
|     Average      Fixed Interest Rate (%) |   |   5.88             |   6.27            |  6.87 |  6.78 |   6.23 |       5.97 |      6.14 |   |
|   Variable      Rate ($)                           |   |                         |                        |   1.6 |   1.6 |    1.6 |       35.2 |      40.0 |      41.0 |
|     Variable      Interest Rate (%)      |   |                         |                        |  3.38 | 3.38 |  3.38 |       3.38 |      3.38 |   |
|                                                         |   |                         |                        |   |   |   |   |   |   |
| Interest      Rate Swaps:                                    |   |                         |                        |   |   |   |   |   |   |
|    Pay      Variable/Receive Fixed ($)        |   |                         |     3.2 |   3.2 |   3.2 |     3.2 |   |      12.8 |        0.4 |
|          Pay Interest Rate (%)                |   |                         |   5.99            | 5.99 | 5.99 |   5.99 |   |      5.99 |   |
|          Receive Interest Rate (%)            |   |                         |   8.75            | 8.75 | 8.75 |   8.75 |   |      8.75 |   |
|    Pay      Fixed/Receive Variable ($)        |   |                         |                        |   1.6 |   1.6 |     1.6 |       35.2 |      40.0 |        (7.6) |
|          Pay Interest Rate (%)                |   |                         |                        | 6.47 | 6.47 |   6.47 |       6.47 |      6.47 |   |
|          Receive Interest Rate (%)            |   |                         |                        | 3.38 | 3.38 |   3.38 |       3.38 |      3.38 |   |

| Expected      Maturity:                           |                                |                        |   |                     |                        |                            |                                  |
|---------------------------------------------------|-------------------------------------|-----------------------------|--------|--------------------------|-----------------------------|---------------------------------|---------------------------------------|
|                                              |         Futures Contracts |                        |   | Options                  |
|                                              |                                |                        |   | Purchased      Call      | Purchased      Put          | Purchased      Put              | Sold      Put                         |
| 2008                                              | Long                                | Short                       |   |                     | (Long)                      | (Short)                         | (Long)                                | (Long) |
| Settlement      Price (a)                         | 13.74                               | 13.30                       |   | Strike      Price (a)    | 10.60                       | 8.41                            | 8.78                                  | - |
| Contract      Amount (b)                          |   22.2                    |     8.4 |   | Contract      Amount (b) |   27.7            |   9.4                 | 23.6                                  | - |
| Fair      Value (b)                               |   31.7                    |     8.2 |   | Fair      Value (b)      |     9.1 |      - |       - | - |
|                                              |                                |                        |   |                     |                        |                            |                                  |   |
| 2009                                              |                                |                        |   |                     |                        |                            |                                  |   |
| Settlement      Price (a)                         | 13.47                               | 14.25                       |   | Strike      Price (a)    | 12.62                       |  8.48                      |  8.44                            | 10.75 |
| Contract      Amount (b)                          |   38.4                    |   14.8            |   | Contract      Amount (b) |   51.5            |  10.4                      | 22.4                                  |    0.6 |
| Fair      Value (b)                               |   55.4                    |   17.2            |   | Fair      Value (b)      |   11.3            |   0.2                 |       - |      - |
|                                              |                                |                        |   |                     |                        |                            |                                  |   |
| (a)      Weighted average, in dollars   |                                |                        |   |                     |                        |                            |
| (b)      Millions of dollars                      |                                |                        |   |                     |                        |                            |                                  |   |

| Swaps                                       | 2008   |  2009 |  2010 |
|---------------------------------------------|--------|------------|------------|
| Commodity      Swaps:                       |   |       |       |
| Pay      fixed/receive variable (b)         | 81.7   | 93.5       | 1.8        |
| Average      pay rate (a)                   | 9.374  | 9.596      | 9.743      |
| Average      received rate (a)              | 13.771 | 13.220     | 11.608     |
| Fair      value (b)                         | 120.0  | 128.9      | 2.2        |
|                                        |   |       |       |
| Pay      variable/receive fixed (b)         | 44.4   | 43.5       | -          |
| Average      pay rate (a)                   | 13.904 | 14.271     | -          |
| Average      received rate (a)              | 10.613 | 12.210     | -          |
| Fair      value (b)                         | 33.9   | 37.2       | -          |
|                                        |   |       |       |
| Basis      Swaps:                           |   |       |       |
| Pay      variable/receive variable (b)      | 25.3   | 10.3       | 5.4        |
| Average      pay rate (a)                   | 13.641 | 13.212     | 11.344     |
| Average      received rate (a)              | 13.684 | 13.225     | 11.295     |
| Fair      value (b)                         | 25.4   | 10.3       | 5.4        |
|                                        |   |       |       |
|                                        |   |       |       |
| (a)      Weighted average, in dollars  |   |       |       |
| (b)      Millions of dollars                |   |       |       |

|                                                                                               |   | June      30, |   | December      31, |   |
|----------------------------------------------------------------------------------------------------|--------|---------------|--------|-------------------|--------|
| Millions      of dollars                                                                           |   | 2008          |   | 2007              |   |
| Assets                                                                                             |   |          |   |
| Utility      Plant In Service                                                                      |   | $             | 8,546  |              | $      | 8,380 |   |
| Accumulated      Depreciation and Amortization                                                     |   |          | (2,723 | )                 |   | (2,643 | ) |
| Construction      Work in Progress                                                                 |   |          | 578    |              |   | 383 |   |
| Nuclear      Fuel, Net of Accumulated Amortization                                                 |   |          | 81     |              |   | 82 |   |
| Utility      Plant, Net                                                                            |   |          | 6,482  |              |   | 6,202 |   |
|                                                                                               |   |          |   |              |   |   |   |
| Nonutility      Property and Investments:                                                          |   |          |   |              |   |   |   |
|        Nonutility property, net of accumulated depreciation                                   |   |          | 40     |              |   | 38 |   |
|        Assets held in trust, net - nuclear decommissioning                                    |   |          | 60     |              |   | 62 |   |
|        Nonutility Property and Investments, Net                                               |   |          | 100    |              |   |        100 |   |
|                                                                                               |   |          |   |              |   |   |   |
| Current      Assets:                                                                               |   |          |   |              |   |   |   |
|        Cash and cash equivalents                                                              |   |          | 19     |              |   | 41 |   |
|        Receivables, net of allowance for uncollectible accounts of $3 and      $2   |   |          | 346    |              |   | 320 |   |
|        Receivables - affiliated companies                                                     |   |          | 1      |              |   | 29 |   |
|        Inventories (at average cost):                                                         |   |          |   |              |   |   |   |
|          Fuel and gas supply                                                        |   |          | 101    |              |   | 139 |   |
|          Materials and supplies                                                     |   |          | 101    |              |   | 97 |   |
|          Emission allowances                                                        |   |          | 24     |              |   | 33 |   |
|   Prepayments      and other                                                             |   |          | 105    |              |   | 52 |   |
|   Deferred      income taxes                                                             |   |          | 5      |              |   | 5 |   |
|        Total Current Assets                                                                   |   |          | 702    |              |   | 716 |   |
|                                                                                               |   |          |   |              |   |   |   |
| Deferred      Debits and Other Assets:                                                             |   |          |   |              |   |   |   |
|        Due from parent - pension asset, net                                                   |   |          | 241    |              |   | 228 |   |
|        Regulatory assets                                                                      |   |          | 701    |              |   | 629 |   |
|        Other                                                                                  |   |          | 101    |              |   | 102 |   |
|        Total Deferred Debits and Other Assets                                                 |   |          | 1,043  |              |   | 959 |   |
| Total                                                                                              |   | $             | 8,327  |              | $      | 7,977 |   |

|                                                                   |   | June      30, |   |  December      31, |   |
|------------------------------------------------------------------------|--------|---------------|--------|-------------------------|--------|
| Millions      of dollars                                               |   | 2008          |   | 2007                    |   |
| Capitalization      and Liabilities                                    |   |          |   |
| Shareholders’      Investment:                                   |   |          |   |                    |   |
|        Common equity                                              |   | $             | 2,669  |                    | $      | 2,622 |   |
|        Preferred stock (Not subject to purchase or sinking funds) |   |          | 106    |                    |   | 106 |   |
|        Total Shareholders’ Investment                       |   |          | 2,775  |                    |   | 2,728 |   |
| Preferred      Stock, net (Subject to purchase or sinking funds)       |   |          | 7      |                    |   | 7 |   |
| Long-Term      Debt, net                                               |   |          | 2,308  |                    |   | 2,003 |   |
| Total      Capitalization                                              |   |          | 5,090  |                    |   | 4,738 |   |
|                                                                   |   |          |   |                    |   |   |   |
| Minority      Interest                                                 |   |          | 94     |                    |   | 89 |   |
|                                                                   |   |          |   |                    |   |   |   |
| Current      Liabilities:                                              |   |          |   |                    |   |   |   |
|        Short-term borrowings                                      |   |          | 230    |                    |   | 464 |   |
|        Current portion of long-term debt                          |   |          | 140    |                    |   | 13 |   |
|        Accounts payable                                           |   |          | 158    |                    |   | 175 |   |
|        Accounts payable - affiliated companies                    |   |          | 224    |                    |   | 178 |   |
|        Customer deposits and customer prepayments                 |   |          | 42     |                    |   | 42 |   |
|        Taxes accrued                                              |   |          | 80     |                    |   | 116 |   |
|        Interest accrued                                           |   |          | 42     |                    |   | 33 |   |
|        Dividends declared                                         |   |          | 43     |                    |   | 37 |   |
|        Other                                                      |   |          | 33     |                    |   | 46 |   |
|        Total Current Liabilities                                  |   |          | 992    |                    |   | 1,104 |   |
|                                                                   |   |          |   |                    |   |   |   |
| Deferred      Credits and Other Liabilities:                           |   |          |   |                    |   |   |   |
|        Deferred income taxes, net                                 |   |          | 856    |                    |   | 820 |   |
|        Deferred investment tax credits                            |   |          | 103    |                    |   | 103 |   |
|        Asset retirement obligations                               |   |          | 302    |                    |   | 294 |   |
|        Due to parent - postretirement and other benefits          |   |          | 187    |                    |   | 187 |   |
|        Regulatory liabilities                                     |   |          | 667    |                    |   | 609 |   |
|        Other                                                      |   |          | 36     |                    |   | 33 |   |
|        Total Deferred Credits and Other Liabilities               |   |          | 2,151  |                    |   | 2,046 |   |
|  Commitments      and Contingencies (Note 5)                      |   |          | -      |                    |   | - |   |
|  Total                                                            |   | $             | 8,327  |                    | $      | 7,977 |   |

|                                                                                                 |   | Three      Months Ended |   |   | Six      Months Ended |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                                                                 |   | June      30,           |   |   | June      30,         |   |
| Millions      of dollars                                                                             |   | 2008                    |   | 2007   |                  |   | 2008 |   |   | 2007 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |
| Operating      Revenues:                                                                             |   |                    |   |   |                  |   |   |   |   |   |   |
|        Electric                                                                                 |   | $                       | 579    |   | $                     | 472    |   | $ | 1,070 |   | $ | 917 |   |
|        Gas                                                                                      |   |                    | 119    |   |                  | 103    |   |   | 321 |   |   | 292 |   |
|        Total Operating Revenues                                                                 |   |                    | 698    |   |                  | 575    |   |   | 1,391 |   |   | 1,209 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Operating      Expenses:                                                                             |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
|        Fuel used in electric generation                                                         |   |                    | 227    |   |                  | 153    |   |   | 404 |   |   | 309 |   |
|        Purchased power                                                                          |   |                    | 16     |   |                  | 7      |   |   | 21 |   |   | 18 |   |
|        Gas purchased for resale                                                                 |   |                    | 96     |   |                  | 81     |   |   | 245 |   |   | 220 |   |
|        Other operation and maintenance                                                          |   |                    | 125    |   |                  | 116    |   |   | 254 |   |   | 246 |   |
|        Depreciation and amortization                                                            |   |                    | 68     |   |                  | 74     |   |   | 136 |   |   | 153 |   |
|        Other taxes                                                                              |   |                    | 39     |   |                  | 35     |   |   | 80 |   |   | 73 |   |
|        Total Operating Expenses                                                                 |   |                    | 571    |   |                  | 466    |   |   | 1,140 |   |   | 1,019 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Operating      Income                                                                                |   |                    | 127    |   |                  | 109    |   |   | 251 |   |   | 190 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
|        Other income                                                                             |   |                    | 8      |   |                  | 7      |   |   | 15 |   |   | 14 |   |
|        Other expenses                                                                           |   |                    | (4     | )      |                  | (2     | ) |   | (7 | ) |   | (6 | ) |
|        Interest charges, net of allowance for borrowed funds                                    |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
|           used during construction of $4, $3, $7 and $5                          |   |                    | (35    | )      |                  | (35    | ) |   | (71 | ) |   | (71 | ) |
|   Allowance      for equity funds used during construction                                 |   |                    | 1      |   |                  | 1      |   |   | 4 |   |   | 1 |   |
| Total      Other Expense                                                                             |   |                    | (30    | )      |                  | (29    | ) |   | (59 | ) |   | (62 | ) |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Income      Before Income Tax Expense, Losses from Equity                                            |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
|    Method      Investments, Minority Interest and Preferred Stock      Dividends |   |                    | 97     |   |                  | 80     |   |   | 192 |   |   | 128 |   |
| Income      Tax Expense                                                                              |   |                    | 35     |   |                  | 20     |   |   | 68 |   |   | 23 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Income      Before Losses from Equity Method Investments,                                            |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
|   Minority      Interest and Preferred Stock Dividends                                     |   |                    | 62     |   |                  | 60     |   |   | 124 |   |   | 105 |   |
| Losses      from Equity Method Investments                                                           |   |                    | -      |   |                  | (4     | ) |   | - |   |   | (10 | ) |
| Minority      Interest                                                                               |   |                    | 2      |   |                  | 2      |   |   | 5 |   |   | 4 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Net      Income                                                                                      |   |                    | 60     |   |                  | 54     |   |   | 119 |   |   | 91 |   |
| Preferred      Stock Cash Dividends Declared                                                         |   |                    | 2      |   |                  | 2      |   |   | 4 |   |   | 4 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| Earnings      Available for Common Shareholder                                                       |   | $                       | 58     |   | $                     | 52     |   | $ | 115 |   | $ | 87 |   |
|                                                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                                       |   |                    |   |   |                  |   |   |   |   |   |   |   |   |

|                                                                                                                                                                |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
|                                                                                                                                                                |   | June      30,         |   |
| Millions      of dollars                                                                                                                                            |   | 2008                  |   | 2007 |   |
|  Cash      Flows From Operating Activities:                                                                                                                    |   |                  |   |   |   |
|        Net income                                                                                                                                              |   | $                     | 119    |   | $ | 91 |   |
|        Adjustments to Reconcile Net Income to Net Cash Provided From Operating      Activities:                                                                |   |                  |   |   |   |   |   |
|     Excess losses from      equity method investments, net of distributions                                                                     |   |                  | -      |   |   | 10 |   |
|          Minority interest                                                                                                                           |   |                  | 5      |   |   | 4 |   |
|          Depreciation and amortization                                                                                                               |   |                  | 136    |   |   | 152 |   |
|          Amortization of nuclear fuel                                                                                                                |   |                  | 5      |   |   | 9 |   |
|     Allowance      for equity funds used during construction                                                                                    |   |                  | (4     | ) |   | - |   |
|          Carrying cost recovery                                                                                                                      |   |                  | (3     | ) |   | (1 | ) |
|          Cash provided (used) by changes in certain assets and      liabilities:                                                                     |   |                  |   |   |   |   |   |
|            Receivables, net                                                                                                                |   |                  | (11    | ) |   | (5 | ) |
|            Inventories                                                                                                                     |   |                  | 14     |   |   | (27 | ) |
|            Prepayments                                                                                                                     |   |                  | (53    | ) |   | (5 | ) |
|            Due from parent – pension asset                                                                                           |   |                  | (13    | ) |   | (11 | ) |
|            Other regulatory assets                                                                                                         |   |                  | 8      |   |   | 6 |   |
|            Deferred income taxes, net                                                                                                      |   |                  | 36     |   |   | (6 | ) |
|            Regulatory liabilities                                                                                                          |   |                  | 49     |   |   | 16 |   |
|            Due to parent - postretirement benefits                                                                                         |   |                  | -      |   |   | 3 |   |
|            Accounts payable                                                                                                                |   |                  | 7      |   |   | (17 | ) |
|            Taxes accrued                                                                                                                   |   |                  | (37    | ) |   | (29 | ) |
|            Interest accrued                                                                                                                |   |                  | 10     |   |   | 1 |   |
|    Changes      in fuel adjustment clauses                                                                                                           |   |                  | (71    | ) |   | 1 |   |
|         Changes in other assets                                                                                                                           |   |                  | 2      |   |   | 19 |   |
|         Changes in other liabilities                                                                                                                      |   |                  | (10    | ) |   | (25 | ) |
|  Net      Cash Provided From Operating Activities                                                                                                              |   |                  | 189    |   |   | 186 |   |
|  Cash      Flows From Investing Activities:                                                                                                                    |   |                  |   |   |   |   |   |
|  Utility      property additions and construction expenditures                                                                                                 |   |                  | (375   | ) |   | (261 | ) |
|  Non-utility      property additions                                                                                                                           |   |                  | (2     | ) |   | (1 | ) |
|  Proceeds      from sale of assets                                                                                                                             |   |                  | 1      |   |   | 1 |   |
|  Short-term      investments-affiliate                                                                                                                         |   |                  | 13     |   |   | 10 |   |
|  Investments                                                                                                                                                   |   |                  | -      |   |   | (9 | ) |
|  Net      Cash Used For Investing Activities                                                                                                                   |   |                  | (363   | ) |   | (260 | ) |
|  Cash      Flows From Financing Activities:                                                                                                                    |   |                  |   |   |   |   |   |
|   Proceeds      from issuance of debt                                                                                                                     |   |                  | 420    |   |   | - |   |
|        Repayment of debt                                                                                                                                       |   |                  | (8     | ) |   | (4 | ) |
|   Retirement      of preferred stock                                                                                                                      |   |                  | -      |   |   | (1 | ) |
|        Dividends                                                                                                                                               |   |                  | (78    | ) |   | (61 | ) |
|        Contribution from parent                                                                                                                                |   |                  | 12     |   |   | 66 |   |
|        Short-term borrowings - affiliate, net                                                                                                                  |   |                  | 40     |   |   | 12 |   |
|        Short-term borrowings, net                                                                                                                              |   |                  | (234   | ) |   | 53 |   |
|        Net Cash Provided From Financing Activities                                                                                                             |   |                  | 152    |   |   | 65 |   |
| Net      Decrease In Cash and Cash Equivalents                                                                                                                      |   |                  | (22    | ) |   | (9 | ) |
| Cash      and Cash Equivalents, January 1                                                                                                                           |   |                  | 41     |   |   | 24 |   |
| Cash      and Cash Equivalents, June 30                                                                                                                        |   | $                     | 19     |   | $ | 15 |   |
|  Supplemental      Cash Flow Information:                                                                                                                      |   |                  |   |   |   |   |   |
|        Cash paid for - Interest (net of capitalized interest of $7 and      $5)                                                                                |   | $                     | 55     |   | $ | 67 |   |
|                         -      Income taxes |   |                  | 16     |   |   | 6 |   |
|   Noncash      Investing and Financing Activities:                                                                                                        |   |                  |   |   |   |   |   |
|        Accrued construction expenditures                                                                                                                       |   |                  | 41     |   |   | 26 |   |
|   See      Notes to Condensed Consolidated FinancialStatements.                                                                                           |   |                  |   |   |   |   |   |

|                                                  |   | June      30, |   |   | December      31, |   |
|-------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Millions      of dollars                              |   | 2008          |   |   | 2007              |   |
| Regulatory      Assets:                               |   |          |   |   |              |   |
| Accumulated      deferred income taxes                |   | $             | 156    |   |              | $      | 156 |   |
| Under      collections – electric fuel clause   |   |          | 60     |   |              |   | - |   |
| Environmental      remediation costs                  |   |          | 20     |   |              |   | 17 |   |
| Asset      retirement obligations and related funding |   |          | 273    |   |              |   | 264 |   |
| Franchise      agreements                             |   |          | 50     |   |              |   | 52 |   |
| Deferred      employee benefit plan costs             |   |          | 105    |   |              |   | 109 |   |
| Other                                                 |   |          | 37     |   |              |   | 31 |   |
| Total      Regulatory Assets                          |   | $             | 701    |   |              | $      | 629 |   |

|                                                                                  |   | June      30, |   |   | December      31, |   |
|---------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Millions      of dollars                                                              |   | 2008          |   |   | 2007              |   |
| Regulatory      Liabilities:                                                          |   |          |   |   |              |   |
| Accumulated      deferred income taxes                                                |   | $             | 31     |   |              | $      | 32 |   |
| Over-collections – electric      fuel and gas cost adjustment clauses |   |          | 74     |   |              |   | 19 |   |
| Other      asset removal costs                                                        |   |          | 488    |   |              |   | 472 |   |
| Storm      damage reserve                                                             |   |          | 51     |   |              |   | 49 |   |
| Planned      major maintenance                                                        |   |          | 3      |   |              |   | 15 |   |
| Other                                                                                 |   |          | 20     |   |              |   | 22 |   |
| Total      Regulatory Liabilities                                                     |   | $             | 667    |   |              | $      | 609 |   |

|                                       | Fair      Value Measurements at June 30, 2008 Using                     |
|--------------------------------------------|-------------------------------------------------------------------------|
|    Millions      of dollars | Quoted      Prices in Active Markets for Identical Assets(Level      1) | Significant      Other Observable Inputs(Level      2) | Significant      Unobservable Inputs(Level      3) |
| Assets:                                    |                                                                    |   |   |
| Derivative      instruments                | $40                                                                     | - | - |
|                                       |                                                                    |   |   |
| Liabilities:                               |                                                                    |   |   |
| Derivative      instruments                |   48                                                          | - | - |

|                                       |   |     |   |      |   | Earnings      (Loss) |   |    |   |
|--------------------------------------------|--------|----------|--------|-----------|--------|----------------------|--------|---------|--------|
|                                       |   |     |   | Operating |   | Available      to    |   |    |   |
|                                       |   | External |   | Income    |   | Common               |   | Segment |   |
| Millions      of Dollars                   |   | Revenue  |   | (Loss)    |   | Shareholder          |   | Assets  |   |
| Three      Months Ended June 30, 2008 |   |     |   |      |   |                 |   |    |   |
| Electric      Operations                   |   | $        | 579    |      | $      | 129                  |   |    | n/a    |   |   |   |   |
| Gas      Distribution                      |   |     | 119    |      |   | (1                   | )      |    | n/a    |   |   |   |   |
| All      Other                             |   |     | -      |      |   | -                    |   | $       | -      |   |   |   |   |
| Adjustments/Eliminations                   |   |     | -      |      |   | (1                   | )      |    | 58     |   |   |   |   |
| Consolidated      Total                    |   | $        | 698    |      | $      | 127                  |   | $       | 58     |   |   |   |   |

| Six      Months Ended June 30, 2008 |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations            |   | $      | 1,070  |   | $      | 226    |   |   | n/a    |   | $ | 6,119 |   |
| Gas      Distribution               |   |   | 321    |   |   | 27     |   |   | n/a    |   |   | 502 |   |
| All      Other                      |   |   | -      |   |   | -      |   | $      | -      |   |   | - |   |
| Adjustments/Eliminations            |   |   | -      |   |   | (2     | )      |   | 115    |   |   | 1,706 |   |
| Consolidated      Total             |   | $      | 1,391  |   | $      | 251    |   | $      | 115    |   | $ | 8,327 |   |

| Three      Months Ended June 30, 2007 |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations                   |   | $      | 472    |   | $      | 111    |   |   | n/a    |   |   |   |   |
| Gas      Distribution                      |   |   | 103    |   |   | -      |   |   | n/a    |   |   |   |   |
| All      Other                             |   |   | -      |   |   | -      |   | $      | (4     | ) |   |   |   |
| Adjustments/Eliminations                   |   |   | -      |   |   | (2     | )      |   | 56     |   |   |   |   |
| Consolidated      Total                    |   | $      | 575    |   | $      | 109    |   | $      | 52     |   |   |   |   |

| Six      Months Ended June 30, 2007 |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      Operations            |   | $      | 917    |   | $      | 166    |   |   | n/a    |   | $ | 5,746  |   |
| Gas      Distribution               |   |   | 292    |   |   | 27     |   |   | n/a    |   |   | 463  |   |
| All      Other                      |   |   | -      |   |   | -      |   | $      | (10    | ) |   | - |   |
| Adjustments/Eliminations            |   |   | -      |   |   | (3     | )      |   | 97     |   |   | 1,501  |   |
| Consolidated      Total             |   | $      | 1,209  |   | $      | 190    |   | $      | 87     |   | $ |  7,710 |   |

|                           |   | Second      Quarter |   |   | Year      to Date |   |
|--------------------------------|--------|---------------------|--------|--------|-------------------|--------|
|  Millions      of dollars |   | 2008                |   | 2007   |              |   | 2008 |   |   | 2007 |   |
|                           |   |                |   |   |              |   |   |   |   |   |   |   |
| Net      income                | $      | 60.2                |   | $      | 53.7              |   |  $ | 119.1 |   | $ | 91.1 |   |

| Declaration      Date  |   Amount            | Quarter      Ended      | Payment      Date    |
|------------------------|-------------------------------|-------------------------|----------------------|
| February      14, 2008 | $40.7      million            | March      31, 2008     | April      1, 2008   |
| April      24, 2008    |        40.8 million      | June      30, 2008      | July      1, 2008    |
| July      31, 2008     |   41.3      million | September      30, 2008 | October      1, 2008 |

|                                                                  |   |   | Second      Quarter |   |          | Year      to Date |   |
|-----------------------------------------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars                                              |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues                                               |   | $      | 578.8               |   | 22.6          | %                 | $      | 472.0 |   | $ | 1,069.8 |   | 16.7 | % | $ | 916.6 |   |
| Less:      Fuel used in electric generation                           |   |   | 227.4               |   | 48.7          | %                 |   | 152.9 |   |   | 404.3 |   | 30.9 | % |   | 308.8 |   |
|               Purchased power |   |   | 16.2                |   | *             |              |   | 6.6 |   |   | 20.9 |   | 16.1 | % |   | 18.0 |   |
| Margin                                                                |   | $      | 335.2               |   | 7.3           | %                 | $      | 312.5 |   | $ | 644.6 |   | 9.3 | % | $ | 589.8 |   |

|                                |   |   | Second      Quarter |   |          | Year      to Date |   |
|-------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars            |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Operating      revenues             |   | $      | 119.3               |   | 15.6          | %                 | $      | 103.2 |   | $ | 321.6 |   | 10.0 | % | $ | 292.3 |   |
| Less:      Gas purchased for resale |   |   | 95.9                |   | 18.5          | %                 |   | 80.9 |   |   | 245.2 |   | 11.3 | % |   | 220.3 |   |
| Margin                              |   | $      | 23.4                |   | 4.9           | %                 | $      | 22.3 |   | $ | 76.4 |   | 6.1 | % | $ | 72.0 |   |

|                                 |   |   | Second      Quarter |   |          | Year      to Date |   |
|--------------------------------------|--------|--------|---------------------|--------|---------------|-------------------|--------|
| Millions      of dollars             |   |   | 2008                |   | %      Change |              |   | 2007 |   |   | 2008 |   | %      Change |   |   | 2007 |   |
| Other      operation and maintenance |   | $      | 124.7               |   | 6.7           | %                 | $      | 116.9 |   | $ | 254.2 |   | 3.3 | % | $ | 246.0 |   |
| Depreciation      and amortization   |   |   | 67.6                |   | (8.6          | )%                |   | 74.0 |   |   | 135.5 |   | (11.6 | )% |   | 153.2 |   |
| Other      taxes                     |   |   | 39.7                |   | 13.1          | %                 |   | 35.1 |   |   | 79.7 |   | 9.9 | % |   | 72.5 |   |

|                                                   |   |   | Three      Months Ended |   | Six      Months Ended |   |
|--------------------------------------------------------|--------|--------|-------------------------|--------|-----------------------|--------|
| Millions      of dollars                               |   |   | June      30, 2007      |   | June      30, 2007    |   |
| Depreciation      and amortization expense             |   | $      | (7.1                    | )      | $                     | (19.1  | ) |
| Income      tax benefits:                              |   |   |                    |   |                  |   |   |
|    From      synthetic fuel tax credits |   |   | 6.8                     |   |                  | 17.7   |   |
|    From      accelerated depreciation   |   |   | 2.7                     |   |                  | 7.3    |   |
|    From      partnership losses         |   |   | 1.5                     |   |                  | 3.6    |   |
| Total      income tax benefits                         |   |   | 11.0                    |   |                  | 28.6   |   |
|                                                   |   |   |                    |   |                  |   |   |
| Losses      from Equity Method Investments             |   |   | (3.9                    | )      |                  | (9.5   | ) |
|                                                   |   |   |                    |   |                  |   |   |
| Impact      on Net Income                              |   | $      | -                       |   | $                     | -      |   |

|   Future      Value |   |   |      |      |            |   |
|-------------------------------|--------|--------|-----------|-----------|-----------------|--------|
| Millions      of dollars      | 2007   | 2008   | 2009-2010 | 2011-2012 | After      2012 | Total  |
| Plant      Costs              | $      | 21     | $         | 183       | $               | 1,095  | $ | 1,431 | $ | 2,681 | $ | 5,411 |
| Transmission      Costs       |   | -      |      | -         |            | -      |   |       2 |   |    636 |   |    638 |

|                                                   |            |                    |   |             |
|--------------------------------------------------------|-----------------|------------------------------|--------|------------------|
| As      of June 30, 2008                          |            |  Expected      Maturity |   |             |
|                                                   |            |                         |   |             |   | There- |   | Fair |
| Millions      of dollars                               | 2008            | 2009                         | 2010   | 2011             | 2012 | after | Total | Value |
|                                                   |            |                         |   |             |   |   |   |   |
| Long-Term      Debt Issued:                            |            |                         |   |             |   |   |   |   |
|   Fixed      Rate ($)                        |   3.7 | 103.7                        | 10.4   | 164.9            | 11.0 | 2,096.9 | 2,390.6 | 2,398.4 |
|     Average      Interest Rate (%) | 7.78            |   6.18             | 6.31   |   6.70 | 4.98 |      5.88 |      5.95 |   |

|  Expected      Maturity:                          |                        |                        |   |                |                        |               |
|--------------------------------------------------------|-----------------------------|-----------------------------|--------|---------------------|-----------------------------|--------------------|
|                                                   | Futures      Contracts      |                        |   | Options             |                        |               |
|                                                   |                        |                        |   |                | Purchased      Call         | Purchased      Put |   |
| 2008                                                   | Long                        | Short                       |   |                | Long                        | Long               |   |   |
| Settlement Price (a)                                   | 13.74                       | 13.14                       |   | Strike Price (a)    | 10.25                       | 8.79               |   |   |
| Contract Amount (b)                                    |     9.1 |     7.1 |   | Contract Amount (b) |   14.5            | 23.6               |   |   |
| Fair Value (b)                                         |   14.3            |     6.6 |   | Fair Value (b)      |     5.2 |   (0.1)  |   |   |
|                                                   |                        |                        |   |                |                        |               |   |   |
| 2009                                                   |                        |                        |   |                |                        |               |   |   |
| Settlement Price (a)                                   | 13.26                       |                        |   | Strike Price (a)    | 12.59                       | 8.44               |   |   |
| Contract Amount (b)                                    |   18.5            |                        |   | Contract Amount (b) |   27.2            | 22.4               |   |   |
| Fair Value (b)                                         |  27.4                  |                        |   | Fair Value (b)      |     6.0 |   (0.4)  |   |   |
|                                                   |                        |                        |   |                |                        |               |   |   |
| (a)  Weighted      average, in dollars  |                        |                        |   |                |                        |               |   |
| (b)       Millions of dollars                     |                        |                        |   |                |                        |               |   |   |

| Swaps                                                              |   |   | 2008                         |   | 2009                         |
|--------------------------------------------------------------------|--------|--------|------------------------------|--------|------------------------------|
| Commodity      Swaps:                                              |   |   |                         |   |                         |
|   Pay      fixed/receive variable (b)               |   |   |     33.7 |   |     48.0 |
|     Average      pay rate (a)        |   |   |   9.170            |   |    9.299      |
|     Average      received rate (a)   |   |   | 13.782                       |   | 12.985                       |
|   Fair      value (b)                               |   |   |    50.7       |   |    67.0       |
|                                                               |   |   |                         |   |                         |
|   Pay      variable /receive fixed (b)              |   |   |     19.5 |   |     23.7 |
|     Average      pay rate (a)        |   |   | 13.799                       |   | 14.275                       |
|     Average      received rate (a)   |   |   | 10.217                       |   | 12.425                       |
|   Fair      value (b)                               |   |   |     14.4 |   |    20.7       |
|                                                               |   |   |                         |   |                         |
| (a)        Weighted average, in dollars             |   |   |                         |   |
| (b)       Millions of dollars                                 |   |   |

| Issuer      Purchases of Equity Securities |
|--------------------------------------------|
|                                       |   |   |   | (d) |
|                                       |   |   |   | Maximum      number (or |
|                                       |   |   | (c) | approximate      dollar value |
|                                       | (a) |   | Total      number of shares |  of      shares (or units) |
|                                       | Total      number of | (b) | (or      units) purchased as | that      may yet be |
|                                       | shares      (or units) | Average      price paid | part      of publicly announced | purchased      under the |
| Period                                     | purchased | per      share (or unit) | plans      or programs | plan      or program |
| April      1-30                            | 333,209 | 37.87 | 333,209 |   |
| May      1-31                              | 108,601 | 40.30 | 108,601 |   |
| June      1-30                             | 150,847 | 39.69 | 150,847 |   |
| Total                                      | 592,657 |   | 592,657 | * |

| 1. | To      elect one (1) Class I Director; one (1) Class II Director and four (4)      Class III Directors for the terms specifiedin |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

|   Nominee       | Number      ofShares      VotingFor | Number      of SharesVoting      toWithhold      Authority | TotalSharesVoted |
|---------------------------|-------------------------------------|------------------------------------------------------------|------------------|
| Bill      L. Amick        | 80,002,392                          |                                                       | 19,858,920       | 99,861,312 |
| Sharon      A. Decker     | 98,239,582                          |                                                       | 1,621,730        | 99,861,312 |
| D.      Maybank Hagood    | 98,270,189                          |                                                       | 1,591,123        | 99,861,312 |
| James      M. Micali      | 98,326,621                          |                                                       | 1,534,691        | 99,861,312 |
| James      W. Roquemore   | 98,319,310                          |                                                       | 1,542,002        | 99,861,312 |
| William      B. Timmerman | 97,882,883                          |                                                       | 1,978,429        | 99,861,312 |

|    |                                          Number                                                                               of                                                                                 Shares                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FOR     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 98,664,553 |   |
| AGAINST |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 733,815 |   |
| ABSTAIN |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 462,944 |   |
| TOTAL   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 99,861,312 |   |

|   | SCANA      CORPORATION                         |
|--------|------------------------------------------------|
|   | SOUTH      CAROLINA ELECTRIC & GAS COMPANY |
|   | (Registrants)                                  |

| By:                             |  /s/James      E. Swan, IV     |
|---------------------------------|-------------------------------------|
|   August      5, 2008 | James      E. Swan, IV              |
|                            | Controller                          |
|                            | (Principal      accounting officer) |

|        | Applicable      toForm 10-Q of |     |
|------------------|------------------------------------------|--------------------|
| Exhibit No. |  SCANA                              |  SCE&G    |  Description  |
|             |                                     |               |   |
| 3.01             | X                                        |               | Restated      Articles of Incorporation of SCANA Corporation as adopted on      April 26, 1989 (Filed as Exhibit 3-A to Registration      Statement No. 33-49145 and incorporated by reference      herein)  |
| 3.02             | X                                        |               | Articles      of Amendment dated April 27, 1995 (Filed as Exhibit 4-B to      Registration Statement No.33-62421      and incorporated by reference herein)  |
| 3.03             |                                     | X                  | Restated      Articles of Incorporation of South Carolina Electric & Gas      Company, as adopted onMay 3,      2001 (Filed as Exhibit 3.01 to Registration Statement      No. 333-65460 and incorporated by reference herein)  |
| 3.04             |                                     | X                  | Articles      of Amendment effective as of the dates indicated below and filed as      exhibits to the Registration Statements or Exchange Act reports set forth      below and are incorporated by reference herein  |
|             |                                     |               | May 22,      2001 | Exhibit 3.02 | to      Registration No. 333-65460 |
|             |                                     |               | June 14,      2001 | Exhibit 3.04 | to      Registration No. 333-65460 |
|             |                                     |               | August 30,      2001 | Exhibit 3.05 | to      Registration No. 333-101449 |
|             |                                     |               | March 13,      2002 | Exhibit 3.06 | to      Registration No. 333-101449 |
|             |                                     |               | May 9,      2002 | Exhibit 3.07 | to      Registration No. 333-101449 |
|             |                                     |               | June 4,      2002 | Exhibit 3.08 | to      Registration No. 333-101449 |
|             |                                     |               | August 12,      2002 | Exhibit 3.09 | to      Registration No. 333-101449 |
|             |                                     |               | March 13,      2003 | Exhibit 3.03 | to      Registration No. 333-108760 |
|             |                                     |               | May 22,      2003 | Exhibit 3.04 | to      Registration No. 333-108760 |
|             |                                     |               | June 18,      2003 | Exhibit 3.05 | to      Registration No. 333-108760 |
|             |                                     |               | August 7,      2003 | Exhibit 3.06 | to      Registration No. 333-108760 |
|             |                                     |               | February      26, 2004 | Exhibit      3.05 | to      Registration No. 333-145208-01 |
|             |                                     |               | May 18,      2004 | Exhibit 3.06 | to      Registration No. 333-145208-01 |
|             |                                     |               | June 18,      2004 | Exhibit 3.07 | to      Registration No. 333-145208-01 |
|             |                                     |               | August 12,      2004 | Exhibit 3.08 | to      Registration No. 333-145208-01 |
|             |                                     |               | March      9, 2005 | Exhibit      3.09 | to      Registration No. 333-145208-01 |
|             |                                     |               | May      16, 2005 | Exhibit      3.10 | to      Registration No. 333-145208-01 |
|             |                                     |               | June      15, 2005 | Exhibit      3.11 | to      Registration No. 333-145208-01 |
|             |                                     |               | August      16, 2005 | Exhibit      3.12 | to      Registration No. 333-145208-01 |
|             |                                     |               | March      14, 2006 | Exhibit      3.13 | to      Registration No. 333-145208-01 |
|             |                                     |               | May      11, 2006 | Exhibit      3.14 | to      Registration No. 333-145208-01 |
|             |                                     |               | June      28, 2006 | Exhibit      3.15 | to      Registration No. 333-145208-01 |
|             |                                     |               | August      16, 2006 | Exhibit      3.16 | to      Registration No. 333-145208-01 |
|             |                                     |               | March      13, 2007 | Exhibit      3.17 | to      Registration No. 333-145208-01 |
|             |                                     |               | May      22, 2007 | Exhibit      3.18 | to      Registration No. 333-145208-01 |
|             |                                     |               | June      22, 2007 | Exhibit      3.19 | to      Registration No. 333-145208-01 |
|             |                                     |               | August      21, 2007 | Exhibit      3.01 | to      Form 8-K filed August 23, 2007 |
|             |                                     |               | May      15, 2008 | Exhibit      3.01 | to      Form 8-K filed May 21, 2008 |
|             |                                     |               | July      9, 2008 | Exhibit      3.01 | to      Form 8-K filed July 10, 2008 |
|             |                                     |               |   |
| 3.05             |                                     | X                  | Articles      of Correction filed on June 1, 2001 correcting May 22, 2001      Articles of Amendment (Filedas      Exhibit 3.03 to Registration Statement No. 333-65460 and      incorporated by reference herein)  |
| 3.06        |                                     | X                  | Articles      of Correction filed on February 17, 2004 correcting Articles of      Amendment for the dates indicated below and filed as exhibits to      Registration Statement No. 333-145208-01 set forth belowand      are incorporated by reference herein  |
|             |                                     |               | May 7,      2001 | Exhibit 3.21(a) |   |
|             |                                     |               | May 22,      2001 | Exhibit 3.21(b) |   |
|             |                                     |               | June 14,      2001 | Exhibit 3.21(c) |   |
|             |                                     |               | August 30,      2001 | Exhibit 3.21(d) |   |

|   |             | Applicable      toForm 10-Q      of |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                 |   |
|--------|------------------|------------------------------------------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--------|
|   | Exhibit No. |  SCANA                              |  SCE&G |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                 |   |   |
|   |             |                                     |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                 |   |
|   |             |                                     |            | March 13,      2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibit 3.21(e) |   |
|   |             |                                     |            | May 9,      2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Exhibit 3.21(f) |   |
|   |             |                                     |            | June 4,      2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Exhibit 3.21(g) |   |
|   |             |                                     |            | August 12,      2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Exhibit 3.21(h) |   |
|   |             |                                     |            | March 13,      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibit 3.21(i) |   |   |
|   |             |                                     |            | May 22,      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Exhibit 3.21(j) |   |   |
|   |             |                                     |            | June 18,      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Exhibit 3.21(k) |   |   |
|   |             |                                     |            | August 7,      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibit 3.21(l) |   |   |
|   |             |                                     |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                 |
|   | 3.07             |                                     | X               | Articles      of Correction dated March 17, 2006, correcting March 14, 2006 Articles of      Amendment (Filed as Exhibit 3.22 to Registration Statement No.      333-145208-01 and incorporated by reference      herein)                                                                                                                                                                                                                                                                                                                                                                                                    |                 |
|   |  3.08       |                                     | X               | Articles      of Correction dated September 6, 2006, correcting August 16, 2006 Articles      of Amendment (Filed as Exhibit 3.23 to Registration Statement No.      333-145208-01 andincorporated      by reference herein)                                                                                                                                                                                                                                                                                                                                                                                                 |                 |
|   | 3.09             |                                     | X               | Articles      of Correction dated May 20, 2008, correcting May 15, 2008 Articles of      Amendment (Filed      as Exhibit 3.02 to Form 8-K on May 21, 2008 and incorporated by reference      herein)                                                                                                                                                                                                                                                                                                                                                                                                                        |                 |
|   | 3.10             | X                                        |            | By-Laws      of SCANA as revised and amended on December 13, 2000 (Filed as      Exhibit 3.01 to Registration Statement No. 333-68266 and      incorporated by reference herein)                                                                                                                                                                                                                                                                                                                                                                                                                              |                 |
|   | 3.11             |                                     | X               | By-Laws      of SCE&G as revised and amended on February 22, 2001 (Filed as      Exhibit 3.05 to Registration Statement No. 333-65460 and      incorporated by reference herein)                                                                                                                                                                                                                                                                                                                                                                                                                          |                 |
|   | 10.01            | X                                        | X               | Engineering,      Procurement and Construction Agreement, dated May 23, 2008,      betweenSouth      Carolina Electric & Gas Company, for itself and as Agent for the South      CarolinaPublic      Service Authority and a Consortium consisting of Westinghouse Electric      CompanyLLC      and Stone &Webster, Inc. (portions of the exhibit have been omitted      and filed separately with      the Securities and Exchange Commission pursuant to a request for      confidential treatment      pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as      amended) (Filed      herewith)  |
|   | 31.01            | X                                        |            | Certification      of Principal Executive Officer Required by Rule 13a-14 (Filed      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 31.02            | X                                        |            | Certification      of Principal Financial Officer Required by Rule 13a-14 (Filed      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 31.03            |                                     | X               | Certification      of Principal Executive Officer Required by Rule 13a-14 (Filed      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 31.04            |                                     | X               | Certification      of Principal Financial Officer Required by Rule 13a-14 (Filed      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 32.01            | X                                        |            | Certification      of Principal Executive Officer Pursuant to 18 U.S.C.      Section 1350(Furnished      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 32.02            | X                                        |            | Certification      of Principal Financial Officer Pursuant to 18 U.S.C.      Section 1350(Furnished      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 32.03            |                                     | X               | Certification      of Principal Executive Officer Pursuant to 18 U.S.C.      Section 1350(Furnished      herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 32.04            |                                     | X               | Certification      of Principal Financial Officer Pursuant to 18 U.S.C.      Section 1350(Furnished herewith)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |