<PAGE>

                   SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC 20549

                                       
    
                             FORM 10-Q

(Mark One)

 X       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
   
         For the quarterly period ended   March 31, 1997              
  
                             OR

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

         For the transition period from           to           

                 Commission file number 1-3375    

                   South Carolina Electric & Gas Company          
          (Exact name of registrant as specified in its charter)

  South Carolina                                 57-0248695       
(State or other jurisdiction of             (I.R.S. Employer 
   incorporation or organization)             Identification No.)

1426 Main Street, Columbia, South Carolina           29201    
(Address of principal executive offices)           (Zip Code)  

Registrant's telephone number, including area code (803) 748-3000 

   Former name, former address and former fiscal year, if changed 
    since last report.

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  
Yes   X    .  No         .

      APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
        PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.  
Yes        .  No         .

             APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.

     As of March 31, 1997, there were issued and outstanding
40,296,147 shares of the registrant's common stock, $4.50 par
value, all of which were held, beneficially and of record, by
SCANA Corporation.


1



<PAGE>    


                  SOUTH CAROLINA ELECTRIC & GAS COMPANY

                                  INDEX


PART I.  FINANCIAL INFORMATION                                            Page

   Item 1.  Financial Statements

       Consolidated Balance Sheets as of March 31, 1997    
         and December 31, 1996........................................      3

       Consolidated Statements of Income and Retained Earnings
         for the Periods Ended March 31, 1997 and 1996................      5

       Consolidated Statements of Cash Flows for the Periods
         Ended March 31, 1997 and 1996................................      6

       Notes to Consolidated Financial Statements.....................      7

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations.......................     10

PART II.  OTHER INFORMATION

   Item 1.  Legal Proceedings.........................................     15

   Item 6.  Exhibits and Reports on Form 8-K..........................     15

Signatures............................................................     16

Exhibit Index.........................................................     17


2



<PAGE>

<TABLE>

                                             PART I
                                      FINANCIAL INFORMATION
                              SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   CONSOLIDATED BALANCE SHEETS
                            As of March 31, 1997 and December 31, 1996
                                          (Unaudited)

  <S>     <C>                                             <C>                <C>
                                                            March 31,      December 31,
                                                              1997             1996  
                                                             (Thousands of Dollars)

ASSETS
Utility Plant:
  Electric.............................................   $3,894,703         $3,870,561
  Gas..................................................      339,979            338,095
  Transit..............................................        3,881              3,923
  Common...............................................       82,058             81,858
    Total..............................................    4,320,621          4,294,437
  Less accumulated depreciation and amortization.......    1,362,459          1,331,824 
    Total..............................................    2,958,162          2,962,613
  Construction work in progress........................      225,161            193,278
  Nuclear fuel, net of accumulated amortization........       38,659             41,006
      Utility Plant, Net...............................    3,221,982          3,196,897

Nonutility Property and Investments, net of 
  accumulated depreciation.............................       15,757             11,529

Current Assets:
  Cash and temporary cash investments..................       28,363              5,399
  Receivables - customer and other.....................      156,743            170,476
  Receivables - affiliated companies...................        1,500              1,021
  Inventories (at average cost):                                    
    Fuel...............................................       33,480             33,121
    Materials and supplies.............................       46,521             45,375
  Prepayments..........................................        9,597              8,758
  Deferred income taxes................................       20,025             20,025
      Total Current Assets.............................      296,229            284,175

Deferred Debits:
  Emission allowances..................................       30,485             30,457
  Environmental........................................       41,418             41,375
  Nuclear plant decommissioning fund...................       43,842             42,194
  Pension asset, net...................................       62,116             57,931
  Other................................................      250,280            294,244
      Total Deferred Debits............................      428,141            466,201
                 Total.................................   $3,962,109         $3,958,802


See notes to consolidated financial statements.


3


<PAGE>

                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 CONSOLIDATED BALANCE SHEETS
                         As of March 31, 1997 and December 31, 1996
                                         (Unaudited)
    <S>          <C>    <S>      <C>                       <C>               <C>
                                                            March 31,        December 31,
                                                              1997              1996
                                                               (Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
  Common Equity:
    Common stock ($4.50 par value)......................   $  181,333        $  181,333 
    Premium on common stock and other paid-in capital...      834,106           821,984
    Capital stock expense (debit).......................       (5,313)           (5,340) 
    Retained earnings...................................      430,079           415,485
      Total Common Equity...............................    1,440,205         1,413,462
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................       26,027            26,027
      Total Stockholders' Investment....................    1,466,232         1,439,489
Preferred Stock, net (subject to purchase or 
  sinking funds)........................................       41,253            43,014
Long-term debt, net.....................................    1,279,565         1,276,758
        Total Capitalization............................    2,787,050         2,759,261

Current Liabilities:
  Short-term borrowings.................................       98,600            90,000 
  Current portion of long-term debt.....................       42,755            42,755
  Current portion of preferred stock....................        2,432             2,432
  Accounts payable......................................       51,868            66,741
  Accounts payable - affiliated companies...............       18,007            31,395
  Customer deposits.....................................       15,506            14,944
  Taxes accrued.........................................       40,320            66,900
  Interest accrued......................................       24,693            21,304
  Dividends declared....................................       35,774            35,972
  Other.................................................        6,139             5,004
        Total Current Liabilities.......................      336,094           377,447

Deferred Credits:
  Deferred income taxes.................................      538,323           521,745
  Deferred investment tax credits.......................       74,262            75,073
  Reserve for nuclear plant decommissioning.............       43,842            42,194
  Other.................................................      182,538           183,082
        Total Deferred Credits..........................      838,965           822,094
                 Total .................................   $3,962,109        $3,958,802
                              

See notes to consolidated financial statements.



4



<PAGE> 
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     For the Periods Ended March 31, 1997 and 1996
                                     (Unaudited)                                 
   <S>     <C>                                               <C>         <C>
   
                                                              Three Months Ended    
                                                                   March 31,      
                                                               1997        1996    
                                                            (Thousands of Dollars) 
 OPERATING REVENUES:                                  
   Electric................................................  $252,623    $262,183   
   Gas.....................................................    84,427      91,171   
   Transit.................................................       411         910   
        Total Operating Revenues...........................   337,461     354,264   
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation........................    38,114      41,676   
   Purchased power (including 
     affiliated purchases).................................    24,628      24,707   
   Gas purchased from affiliate  
     for resale............................................    47,755      55,962   
   Other operation.........................................    52,039      52,203   
   Maintenance.............................................    14,646      14,246   
   Depreciation and amortization...........................    34,907      32,667   
   Income taxes............................................    28,223      32,463   
   Other taxes.............................................    23,604      20,861   
        Total Operating Expenses...........................   263,916     274,785   
                                   
 OPERATING INCOME..........................................    73,545      79,479   
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction...................................     1,316       1,253   
   Other income (loss), net of 
     income taxes..........................................       334         276   
        Total Other Income.................................     1,650       1,529   
   
                                                 
 INCOME BEFORE INTEREST CHARGES............................    75,195      81,008   
                                   
 INTEREST CHARGES (CREDITS): 
   Interest expense........................................    26,352      26,734   
   Allowance for borrowed funds 
     used during construction..............................    (1,494)     (1,810)  
        Total Interest Charges, net........................    24,858      24,924   
    
 NET INCOME................................................    50,337      56,084   
 Preferred Stock Cash Dividends 
   (at stated rates).......................................    (1,343)     (1,370)  
 Earnings Available for Common Stock.......................    48,994      54,714   
 Retained Earnings at Beginning 
   of Period...............................................   415,485     366,236   
 Common Stock Cash Dividends 
   Declared................................................   (34,400)    (32,800)  
 Retained Earnings at End of Period........................  $430,079    $388,150   
 
See notes to consolidated financial statements.



5



<PAGE>
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended March 31, 1997 and 1996
                                      (Unaudited)
  <S>       <C>                                         <C>             <C>
                                                          Three Months Ended
                                                               March 31,   
                                                          1997            1996
                                                          (Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income........................................... $ 50,337        $ 56,084
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................   34,937          32,697
    Amortization of nuclear fuel.......................    5,767           5,208 
    Deferred income taxes, net.........................   16,580          14,064 
    Pension asset......................................   (4,185)         (3,104)
    Allowance for funds used during construction.......   (2,810)         (3,063)
    Over (under) collections, fuel adjustment clause...   17,100           9,155 
    Early retirements..................................    4,306          (4,260)
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............   13,254          (9,916)
      (Increase) decrease in inventories...............   (1,505)         (1,772) 
      Increase (decrease) in accounts payable..........  (28,261)        (26,300)
      Increase (decrease) in taxes accrued.............  (26,580)        (24,443) 
      Increase (decrease) in interest accrued..........    3,389           3,160 
    Other, net.........................................   (1,439)          5,079 
Net Cash Provided From Operating Activities............   80,890          52,589

CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC...........................  (39,534)        (40,895)
  Nonutility property and investments..................   (4,187)            (16)
Net Cash Used For Investing Activities.................  (43,721)        (40,911)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................   12,148          11,697
  Repayments:                                                                 
    Repayment of bank loans............................     -             (1,886)
    Other long-term debt...............................     -               (387)
    Preferred stock....................................   (1,761)         (1,762) 
  Dividend payments:                                                           
    Common stock.......................................  (34,600)        (31,700) 
    Preferred stock....................................   (1,341)         (1,396) 
  Short-term borrowings, net...........................    8,600          (1,500) 
  Fuel and emission allowance financings, net..........    2,749           8,458 
Net Cash Used For Financing Activities.................  (14,205)        (18,476)         

NET INCREASE (DECREASE) IN CASH AND               
  TEMPORARY CASH INVESTMENTS...........................   22,964          (6,798)
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......    5,399           6,798
CASH AND TEMPORARY CASH INVESTMENTS AT MARCH 31........ $ 28,363        $   -   
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $1,494 and $1,810)...... $ 22,466        $ 22,802
                - Income taxes.........................   (3,524)          1,916 


See notes to consolidated financial statements.



6

</TABLE>


<PAGE>  


              SOUTH CAROLINA ELECTRIC & GAS COMPANY
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         March 31, 1997
                          (Unaudited)

     The following notes should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the
Company's Annual Report on Form 10-K for the year ended December
31, 1996.  These are interim financial statements and, because of
temperature variations between seasons of the year, the amounts
reported in the Consolidated Statements of Income are not
necessarily indicative of amounts expected for the year.  In the
opinion of management, the information furnished herein reflects
all adjustments, all of a normal recurring nature, which are
necessary for a fair statement of the results for the interim
periods reported.

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

        A.  Basis of Accounting

        The Company accounts for its regulated utility operations,
        assets and liabilities in accordance with the provisions of
        Statement of Financial Accounting Standards No. 71 (SFAS 71). 
        The accounting standard requires cost-based rate-regulated
        utilities, such as the Company, to recognize in their financial
        statements revenues and expenses in different time periods than
        do enterprises that are not rate-regulated.  As  a  result, the
        Company has recorded, as of March 31, 1997, approximately  $239
        million and $60 million of regulatory assets and liabilities,
        respectively, including amounts recorded for deferred income
        tax assets and liabilities of approximately $104 million and
        $52 million, respectively.  The electric regulatory assets of
        approximately $89 million (excluding deferred income tax
        assets) are being recovered through rates, and the Public
        Service Commission of South Carolina (PSC) has approved
        accelerated recovery of approximately $61 million of these
        assets.  In the future, as a result of deregulation or other
        changes in the regulatory environment, the Company may no
        longer meet the criteria for continued application of SFAS 71
        and would be required to write off its regulatory assets and
        liabilities.  Such an event could have a material adverse
        effect on the Company's results of operations in the period the
        write-off is recorded, but it is not expected that cash flows
        or financial position would be materially affected.

        B.  Reclassifications

        Certain amounts from prior periods have been reclassified to
        conform with the 1997 presentation.

2.   RETAINED EARNINGS:

        The Restated Articles of Incorporation of the Company and the
        Indenture underlying certain of its bond issues contain
        provisions that may limit the payment of cash dividends on
        common stock.  In addition, with respect to hydroelectric
        projects, the Federal Power Act may require the appropriation
        of a portion of the earnings therefrom.  At March 31, 1997
        approximately $18.4 million of retained earnings were
        restricted as to payment of cash dividends on common stock.

3.   CONTINGENCIES:

        With respect to commitments at March 31, 1997, reference is
        made to Note 10 of Notes to Consolidated Financial Statements
        appearing in the Company's Annual Report on Form  10-K for  the
        year ended December 31, 1996.  Contingencies at March 31, 1997
        are as follows:


7


<PAGE>

         A.  Nuclear Insurance

        The Price-Anderson Indemnification Act, which deals with the
        Company's public liability for a nuclear incident, currently
        establishes the liability limit for third-party claims
        associated with any nuclear incident at $8.9 billion.  Each
        reactor licensee is currently liable for up to $79.3 million
        per reactor owned for each nuclear incident occurring at any
        reactor in the United States, provided that not more than $10
        million of the liability per reactor would be assessed per
        year.  The Company's maximum assessment, based on its two-
        thirds ownership of Summer Station, would be approximately
        $52.9 million per incident, but not more than $6.7 million per
        year.

        The Company currently maintains policies (for itself and on
        behalf of the South Carolina Public Service Authority with
        American Nuclear Insurers (ANI) and Nuclear Electric Insurance
        Limited (NEIL) providing combined property and decontamination
        insurance coverage of $1.9 billion for any losses at Summer
        Station. The Company pays annual premiums and, in addition,
        could be assessed a retroactive premium assessment not to
        exceed five times its annual premium in the event of property
        damage loss to any nuclear generating facility covered under
        the  NEIL  program.  Based  on  the  current annual premium,
        this retroactive premium assessment would not exceed $5.7
        million.  

        To the extent that insurable claims for property damage,
        decontamination, repair and replacement and other costs and
        expenses arising from a nuclear incident at Summer Station
        exceed the policy limits of insurance, or to the extent such
        insurance becomes unavailable in the future, and to the extent
        that the Company's rates would not recover the cost of any
        purchased replacement power, the Company will retain the risk
        of loss as a self-insurer.  The Company has no reason to
        anticipate a serious nuclear incident at Summer Station.  If
        such an incident were to occur, it could have a material
        adverse impact on the Company's results of operations, cash
        flows and financial position.
 
        B.  Environmental

        The Company has an environmental assessment program to identify
        and assess current and former operations sites that could
        require environmental cleanup.  As site assessments are
        initiated an estimate is made of the amount of expenditures, if
        any, necessary to investigate and clean up each site.  These
        estimates are refined as additional information becomes
        available; therefore, actual expenditures could differ
        significantly from the original estimates.  Amounts estimated
        and accrued to date for site assessments and cleanup relate
        primarily to regulated operations; such amounts are deferred
        (approximately $41.4 million) and are being amortized and
        recovered through rates over a five-year period for electric
        operations and an eight-year period for gas operations.  The
        deferral includes the costs estimated to be associated with the
        matters discussed below.

                     In September 1992 the Environmental Protection Agency
                     (EPA) notified the Company, the City of Charleston
                     and the Charleston Housing Authority of their
                     potential liability for the investigation and cleanup
                     of the Calhoun Park area site in Charleston, South
                     Carolina.  This site originally encompassed
                     approximately 18 acres and included properties which
                     were the locations for industrial operations,
                     including a wood preserving (creosote) plant and one
                     of the Company's decommissioned manufactured gas
                     plants.  The original scope of this investigation has
                     been expanded to approximately 30 acres, including
                     adjacent properties owned by the National Park
                     Service, the City of Charleston and private
                     properties.  The site has not been placed on the
                     National Priority List, but may be added before
                     cleanup is initiated.  The potentially responsible
                     parties (PRP) have agreed with the 


8


<PAGE>

                     EPA to participate in an innovative approach to site
                     investigation and cleanup called "Superfund
                     Accelerated Cleanup Model," allowing the pre-cleanup
                     site investigation process to be compressed
                     significantly.  The PRPs have negotiated an
                     administrative order by consent for the conduct of a
                     Remedial Investigation/Feasibility Study and a
                     corresponding Scope of Work.  Field work began in
                     November 1993 and the EPA conditionally approved a
                     Remedial Investigation Report in March 1997.  The
                     Company is continuing to investigate cost effective
                     cleanup methodologies.  

                     In October 1996 the City of Charleston and the
                     Company settled all environmental claims the City may
                     have had against the Company involving the Calhoun
                     Park area for a payment of $26 million over four
                     years (1996-1999) by the Company to the City.  The
                     Company expects to recover the amount of the
                     settlement, which does not encompass site assessment
                     and cleanup costs, in the same manner as other
                     amounts accrued for site assessments and cleanup as
                     discussed above.  As part of the environmental
                     settlement, the Company has agreed to construct an
                     1,100 space parking garage on the Calhoun Park site
                     and to transfer the facility to the City in exchange
                     for a 20-year municipal bond backed by revenues from
                     the parking garage and a mortgage on the parking
                     garage.  The total amount of the bond is not to
                     exceed $16.9 million, the maximum expected project
                     cost.  

                     The Company owns three other decommissioned
                     manufactured gas plant sites which contain residues
                     of by-product chemicals.  The Company is actively
                     investigating review the sites to monitor the nature
                     and extent of the residual contamination.

         The Company is pursuing recovery of environmental liabilities
         from appropriate pollution insurance carriers.  Site assessment
         and cleanup costs recovered through rates are net of insurance
         recoveries.

4.       Subsequent Event       

         On April 24, 1997 the Company sold 1,000,000 shares of 6.52%
         cumulative preferred stock, $100 par value. Net proceeds from
         the sale will be used to reduce short term indebtedness
         incurred for the Company's construction program, to refinance
         senior securities or for general corporate purposes.



9


<PAGE>

                SOUTH CAROLINA ELECTRIC & GAS COMPANY
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

Competition

     The electric utility industry has begun a major transition
that could lead to expanded market competition and less regulation. 
Deregulation of electric wholesale and retail markets is creating
opportunities to compete for new and existing customers and
markets.  As a result, profit margins and asset values of some
utilities could be adversely affected.  Legislative initiatives at
the Federal and state levels are being considered and, if enacted,
could mandate market deregulation.  The pace of deregulation,
future prices of electricity, and the regulatory actions which may
be taken by the PSC and the FERC in response to the changing
environment cannot be predicted.  However, recent FERC actions will
likely accelerate competition among electric utilities by providing
for wholesale transmission access.  In April 1996 the FERC issued
Order 888, which addresses open access to transmission lines and
stranded cost recovery.  Order 888 requires utilities under FERC
jurisdiction that own, control or operate transmission lines to
file nondiscriminatory open access tariffs that offer to others the
same transmission service they provide themselves.  The FERC has
also permitted utilities to seek recovery of wholesale stranded
costs from departing customers by direct assignment.  Approximately
five percent of the Company's electric revenues is under FERC
jurisdiction.   

     The Company is aggressively pursuing actions to position
itself strategically for the transformed environment.  To enhance
its flexibility and responsiveness to change, the Company operates
Strategic Business Units.  Maintaining a competitive cost structure
is of paramount importance in the utility's strategic plan. The
Company has undertaken a variety of initiatives, including
reductions in operation and maintenance costs and in staffing
levels.  In January 1996 the PSC approved (as discussed under
"Liquidity and Capital Resources") the accelerated recovery of the
Company's electric regulatory assets and the shift, for ratemaking
purposes, of depreciation reserves from transmission and
distribution assets to nuclear production assets.  The FERC has
rejected the depreciation transfer for rates subject to its
jurisdiction.  In May 1996 the FERC approved the Company's
application establishing open access transmission tariffs and
requesting authorization to sell bulk power to wholesale customers
at market-based rates.  Significant investments are being made in
customer and management information systems.  Marketing of services
to commercial and industrial customers has been increased
significantly.   The Company believes that these actions as well as
numerous others that have been and will be taken demonstrate its
ability and commitment to succeed in the new operating environment
to come.

    Regulated public utilities are allowed to record as assets some
costs that would be expensed by other enterprises.  If deregulation
or other changes in the regulatory environment occur, the Company
may no longer be eligible to apply this accounting treatment and
may be required to eliminate such regulatory assets from its
balance sheet.  Although the potential effects of deregulation
cannot be determined at present, discontinuation of the accounting
treatment could have a material adverse effect on the Company's
results of operations in the period the write-off is recorded.  It
is expected that cash flows and the financial position of the
Company would not be materially affected by the discontinuation of
the accounting treatment.  The Company reported approximately  $239
million and $60 million of regulatory assets and liabilities,
respectively, including amounts recorded for deferred income tax
assets and liabilities of approximately $104 million and $52
million, respectively, on its balance sheet at March 31, 1997.  



10


<PAGE>


         Material Changes in Capital Resources and Liquidity
         Since December 31, 1996

Liquidity and Capital Resources

     The cash requirements of the Company arise primarily from its
operational needs and its construction program.  The ability of the
Company to replace existing plant investment, as well as to expand
to meet future demand for electricity and gas, will depend upon its
ability to attract the necessary financial capital on reasonable
terms.  The Company recovers the costs of providing services
through rates charged to customers.  Rates for regulated services
are generally based on historical costs.  As customer growth and
inflation occur and the Company continues its ongoing construction
program, it is necessary to seek increases in rates.  As a result,
the Company's future financial position and results of operations
will be affected by its ability to obtain adequate and timely rate
and other regulatory relief.

     On January 9, 1996 the PSC issued an order granting the
Company an increase in retail electric rates of 7.34%, which will
produce additional revenues of approximately $67.5 million
annually.  The increase has been implemented in two phases.  The
first phase, an increase in revenues of approximately $59.5 million
annually based on a test year, or 6.47%, commenced in January 1996. 
The second phase, an increase in revenues of approximately $8.0
million annually, based on a test year or .87%, was implemented in
January 1997.  The PSC authorized a return on common equity of
12.0%.  The PSC also approved establishment of a Storm Damage
Reserve Account capped at $50 million and collected through rates
over a ten-year period.  Additionally, the PSC approved accelerated
recovery of a significant portion of the Company's electric
regulatory assets (excluding deferred income tax assets) and the
remaining transition obligation for postretirement benefits other
than pensions, changing the amortization periods to allow recovery
by the end of the year 2000.  The Company's request to shift, for
ratemaking purposes, approximately $257 million of depreciation
reserves from transmission and distribution assets to nuclear
production assets was also approved.  The PSC's ruling does not
apply to wholesale electric revenue under the FERC's jurisdiction,
which constitute approximately five percent of the Company's
electric revenues.  The FERC has rejected the transfer of
depreciation reserves for rates subject to its jurisdiction.

     The following table summarizes how the Company generated funds
for its utility property additions and construction expenditures
during the three months ended March 31, 1997 and 1996:

                                                                       
                                                 Three Months Ended
                                                      March 31,
                                                   1997         1996   
                                                 (Thousands of Dollars)

Net cash provided from operating activities     $ 80,890     $ 52,589
Net cash used for financing activities           (14,205)     (18,476)  
Cash and temporary cash investments available
  at the beginning of the period                   5,399        6,798  
Net cash available for utility property 
  additions and construction expenditures       $ 72,084     $ 40,911  

Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                  $ 39,534     $ 40,895  



11



<PAGE>

     On April 24, 1997 the Company sold 1,000,000 shares of 6.52%
cumulative preferred stock, $100 par value. Net proceeds from the
sale will be used to reduce short term indebtedness incurred for
the Company's construction program, to refinance senior securities
or for general corporate purposes.

     On August 7, 1996 the City of Charleston executed 30-year
electric and gas franchise agreements with the Company.  In
consideration for the electric franchise agreement, the Company
will pay the City $25 million over seven years (1996-2002) and has
donated to the City the existing transit assets in Charleston.  In
settlement of environmental claims the City may have had against
the Company involving the Calhoun Park area, where the Company and
its predecessor companies operated a manufactured gas plant until
the 1960's, the Company will pay the City $26 million over a four-
year period.  As part of the environmental settlement, the Company
has agreed to construct an 1,100 space parking garage on the
Calhoun Park site and to transfer the facility to the City in
exchange for a 20-year municipal bond backed by revenues from the
parking garage and a mortgage on the parking garage.  The total
amount of the bond is not to exceed $16.9 million, the maximum
expected project cost.  

     SCANA and Westvaco Corporation have formed a limited liability
company, Cogen South LLC, to build and operate a $170 million
cogeneration facility at Westvaco's Kraft Division Paper Mill in
North Charleston, South Carolina.  The facility will provide
industrial process steam for the Westvaco paper mill and shaft
horsepower to enable the Company to generate up to 99 megawatts of
electricity.  Construction financing is being provided to Cogen
South LLC by banks.  In addition to the cogeneration LLC, Westvaco
has entered into a 20-year contract with the Company for all its
electricity requirements at the North Charleston mill at the
Company's standard industrial rate.  Construction of the plant
began in September 1996 and it is expected to be operational in the
fall of 1998.

     The Company anticipates that the remainder of its 1997 cash
requirements will be met through internally generated funds,
additional equity contributions from SCANA and the incurrence of
additional short-term and long-term indebtedness.  The timing and
amount of such financings will depend upon market conditions and
other factors.  The ratio of earnings to fixed charges for the
twelve months ended March 31, 1997 was 3.71.  The Company expects
that it has or can obtain adequate sources of financing to meet its
cash requirements for the next twelve months and for the
foreseeable future.


12


<PAGE>

                  SOUTH CAROLINA ELECTRIC & GAS COMPANY
                        Results of Operations
                For the Three Months ended March 31, 1997
             As Compared to the Corresponding Periods in 1996

Earnings and Dividends

     Net income for the three months ended March 31, 1997 decreased
approximately $5.7 million when compared to the corresponding
period in 1996.  A lower electric margin, resulting from milder
weather in the current period, was the primary factor accounting
for the drop in earnings.  The negative impact of weather on the
electric margin was partially offset by higher retail electric
rates and economic and customer growth.

     Allowance for funds used during construction (AFC) is a
utility accounting practice whereby a portion of the cost of both
equity and borrowed funds used to finance construction (which is
shown on the balance sheet as construction work in progress) is
capitalized.  Both the equity and the debt portions of AFC are
noncash items of nonoperating income which have the effect of
increasing reported net income.  AFC represented approximately  4%
and 3% of income before income taxes for the three months ended
March 31, 1997 and 1996, respectively.

     On February 18, 1997 the Company's Board of Directors
authorized the payment of a dividend on common stock of
approximately $34.4 million for the quarter ended March 31, 1997. 
The dividend was paid on April 1, 1997 to SCANA Corporation, the
Company's parent.

     On April 24, 1997 the Company's Board of Directors authorized
the payment of a dividend on common stock of approximately $36.2
million for the quarter ended June 30, 1997.  The dividend is
payable on July 1, 1997 to SCANA Corporation, the Company's parent.

Sales Margins

     The change in the electric sales margin for the three months
ended March 31, 1997, when compared to the corresponding period in
1996, was as follows:
                                                                             
                                                                              
                                                          Three Months      
                                                        Change    % Change    
                                                      (Millions)           

Electric operating revenues                               $(9.6)   (3.6)    
Less:  Fuel used in electric
         generation                                        (3.6)   (8.5)    
       Purchased power                                     (0.1)   (0.3)    
Margin                                                    $(5.9)   (3.0)      


     The electric sales margin decreased for the three months ended
March 31, 1997, when compared to the corresponding period in 1996
as a result of the effect of milder weather which more than offset
the favorable impact of the rate increases placed into effect in
January 1996 and January 1997 and economic growth factors.



13


<PAGE>

                                 
     The change in the gas sales margin for the three months ended
March 31, 1997, when compared to the corresponding period in 1996,
was as follows:

                                                                             
                                                           Three  Months     
                                                         Change    % Change  
                                                       (Millions)           
 
Gas operating revenues                                   $(6.7)     (7.4)   
Less:  Gas purchased for resale                           (8.2)    (14.7)   
Margin                                                   $ 1.5       4.2     

     The gas sales margin increased slightly for the three months
ended March 31, 1997, when compared to the corresponding period in
1996 primarily as a result of increased sales to interruptible
customers attributable to fewer curtailments.

 Other Operating Expenses

     Changes in other operating expenses, including taxes, for the
three months ended March 31, 1997, when compared to the
corresponding period in 1996 are presented in the following
table:
                                                                             
                                                            Three Months  
                                                         Change    % Change  
                                                       (Millions)          

Other operation and maintenance                          $ 0.2       0.4   
Depreciation and amortization                              2.2       6.9   
Income taxes                                              (4.2)    (13.1)  
Other taxes                                                2.8      13.1   
Total                                                    $ 1.0       0.6     


     Other operation and maintenance expenses for the three months
ended March 31, 1997 increased only slightly from 1996 levels. 
Increased costs at electric generating plants were largely offset
by a decrease in transit operating costs resulting from the
Company's transfer of the ownership of the Charleston transit
system to the City of Charleston in October 1996.  The increase in
depreciation and amortization expenses for the three months'
comparisons reflects the addition of the Cope Plant and other
additions to plant in service.  The decrease in income tax expense
results from the decrease in operating income.  The increase in
other taxes results primarily from the accrual of additional
property taxes, beginning in January 1997, related to the Cope
Plant and other property additions.  Recovery of the Cope Plant
property taxes is provided for in a retail electric rate increase
that became effective in January 1997.


14


<PAGE>

                SOUTH CAROLINA ELECTRIC & GAS COMPANY

                              Part II
  
OTHER INFORMATION


Item 1.  Legal Proceedings

             For information regarding legal proceedings see Note 2 "Rate
             Matters," appearing in the Company's Annual Report on Form
             10-K for the year ended December 31, 1996, and Note 3
             "Contingencies" of Notes to Consolidated Financial
             Statements appearing in this Quarterly Report on Form 10-Q.

Items 2, 3, 4 and 5 are not applicable.

Item 6.  Exhibits and Reports on Form 8-K

                 A.  Exhibits

                 Exhibits filed with this Quarterly Report on Form 10-Q
                 are listed in the following Exhibit Index.  Certain of
                 such exhibits which have heretofore been filed with the
                 Securities and Exchange Commission and which are
                 designated by reference to their exhibit numbers in
                 prior filings are hereby incorporated herein by
                 reference and made a part hereof.

                 B.  Reports on Form 8-K

                 None



15


<PAGE>



                    SOUTH CAROLINA ELECTRIC & GAS COMPANY

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                   SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                               (Registrant)




May 13, 1997                       By:  s/Jimmy E. Addison            
                                        Jimmy E. Addison
                                        Vice President and Controller 
                                        (Principal Accounting Officer)



16


<PAGE>
                   SOUTH CAROLINA ELECTRIC & GAS COMPANY        Sequentially 
                                EXHIBIT INDEX                     Numbered      
Number                                                              Pages 
    2. Plan of Acquisition, Reorganization, Arrangement,
       Liquidation or Succession
       Not Applicable
    
    3. Articles of Incorporation and By-Laws

       A. Restated Articles of Incorporation of the
          Company as adopted on December 15, 1993 
          (Exhibit 3-A to Form 10-Q for the quarter 
          ended June 30, 1994, File No. 1-3375)......................    #
       B. Articles of Amendment, dated June 7, 1994,
          filed June 9, 1994 (Exhibit 3-B to Form 10-Q
          for the quarter ended June 30, 1994, File 
          No. 1-3375)
       C. Articles of Amendment, dated November 9, 1994
          (Exhibit 3-C to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       D. Articles of Amendment, dated December 9, 1994
          (Exhibit 3-D to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       E. Articles of Correction, dated January 17, 1995
          (Exhibit 3-E to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       F. Articles of Amendment, dated January 13, 1995
          (Exhibit 3-F to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       G. Articles of Amendment, dated March 31, 1995
          (Exhibit 3-G to Form 10-Q for the quarter
          ended March 31, 1995, File No. 1-3375).....................   #
       H. Articles of Correction - Amendment to Statement 
          filed March 31, 1995, dated December 13, 1995 
          (Exhibit 3-H to Form 10-K for the year ended
          December 31, 1995, File No. 1-3375)........................   #
       I. Articles of Amendment dated December 13, 1995
          (Exhibit 3-I to Form 10-K for the year ended
          December 31, 1995, File No. 1-3375)........................   #
       J. Copy of By-Laws of the Company as revised and 
          amended on June 18, 1996 (Exhibit 3-J to Form 
          10-Q for the quarter ended March 31, 1996)..................  #
       K. Articles of Amendment dated February 18, 1997
          (Exhibit 3-L to Registration Statement No. 333-
          24919)......................................................  #
       L. Articles of Amendment dated February 21, 1997
          (Filed herewith)............................................  20 
    4. Instruments Defining the Rights of Security
       Holders, Including Indentures
       A. Indenture dated as of January 1, 1945, from the
          South Carolina Power Company (the "Power Company")
          to Central Hanover Bank and Trust Company, as 
          Trustee, as supplemented by three Supplemental 
          Indentures dated respectively as of May 1, 1946, 
          May 1, 1947 and July 1, 1949 (Exhibit 2-B to 
          Registration No. 2-26459)..................................   #
       B. Fourth Supplemental Indenture dated as of April 1, 
          1950, to Indenture referred to in Exhibit 4A, 
          pursuant to which the Company assumed said 
          Indenture (Exhibit 2-C to Registration No. 2-26459)........   #
       C. Fifth through Fifty-second Supplemental Indentures
          to Indenture referred to in Exhibit 4A dated as 
          of the dates indicated below and filed as 
          exhibits to the Registration Statements and 
          1934 Act reports whose file numbers are set 
          forth below................................................   #
    December 1, 1950   Exhibit 2-D to Registration No. 2-26459
    July 1, 1951       Exhibit 2-E to Registration No. 2-26459

# Incorporated herein by reference as indicated.

17


<PAGE>

                   SOUTH CAROLINA ELECTRIC & GAS COMPANY           Sequentially 
                                EXHIBIT INDEX                        Numbered  
Number                                                                 Pages 
    4.  (Continued)
    June 1, 1953       Exhibit 2-F to Registration No. 2-26459
    June 1, 1955       Exhibit 2-G to Registration No. 2-26459
    November 1, 1957   Exhibit 2-H to Registration No. 2-26459
    September 1, 1958  Exhibit 2-I to Registration No. 2-26459
    September 1, 1960  Exhibit 2-J to Registration No. 2-26459
    June 1, 1961       Exhibit 2-K to Registration No. 2-26459
    December 1, 1965   Exhibit 2-L to Registration No. 2-26459
    June 1, 1966       Exhibit 2-M to Registration No. 2-26459
    June 1, 1967       Exhibit 2-N to Registration No. 2-29693
    September 1, 1968  Exhibit 4-O to Registration No. 2-31569
    June 1, 1969       Exhibit 4-C to Registration No. 33-38580
    December 1, 1969   Exhibit 4-Q to Registration No. 2-35388
    June 1, 1970       Exhibit 4-R to Registration No. 2-37363  
    March 1, 1971      Exhibit 2-B-17 to Registration No. 2-40324
    January 1, 1972    Exhibit 4-C to Registration No. 33-38580
    July 1, 1974       Exhibit 2-A-19 to Registration No. 2-51291
    May 1, 1975        Exhibit 4-C to Registration No. 33-38580
    July 1, 1975       Exhibit 2-B-21 to Registration No. 2-53908
    February 1, 1976   Exhibit 2-B-22 to Registration No. 2-55304
    December 1, 1976   Exhibit 2-B-23 to Registration No. 2-57936
    March 1, 1977      Exhibit 2-B-24 to Registration No. 2-58662
    May 1, 1977        Exhibit 4-C to Registration No. 33-38580
    February 1, 1978   Exhibit 4-C to Registration No. 33-38580
    June 1, 1978       Exhibit 2-A-3 to Registration No. 2-61653
    April 1, 1979      Exhibit 4-C to Registration No. 33-38580
    June 1, 1979       Exhibit 4-C to Registration No. 33-38580
    April 1, 1980      Exhibit 4-C to Registration No. 33-38580
    June 1, 1980       Exhibit 4-C to Registration No. 33-38580
    December 1, 1980   Exhibit 4-C to Registration No. 33-38580
    April 1, 1981      Exhibit 4-D to Registration No. 33-49421
    June 1, 1981       Exhibit 4-D to Registration No. 2-73321
    March 1, 1982      Exhibit 4-D to Registration No. 33-49421
    April 15, 1982     Exhibit 4-D to Registration No. 33-49421
    May 1, 1982        Exhibit 4-D to Registration No. 33-49421
    December 1, 1984   Exhibit 4-D to Registration No. 33-49421
    December 1, 1985   Exhibit 4-D to Registration No. 33-49421
    June 1, 1986       Exhibit 4-D to Registration No. 33-49421
    February 1, 1987   Exhibit 4-D to Registration No. 33-49421
    September 1, 1987  Exhibit 4-D to Registration No. 33-49421
    January 1, 1989    Exhibit 4-D to Registration No. 33-49421
    January 1, 1991    Exhibit 4-D to Registration No. 33-49421
    February 1, 1991   Exhibit 4-D to Registration No. 33-49421
    July 15, 1991      Exhibit 4-D to Registration No. 33-49421
    August 15, 1991    Exhibit 4-D to Registration No. 33-49421
    April 1, 1993      Exhibit 4-E to Registration No. 33-49421
    July 1, 1993       Exhibit 4-D to Registration No. 33-57955 
      D.  Indenture dated as of April 1, 1993 from South Carolina
          Electric & Gas Company to NationsBank of Georgia, National
          Association (Filed as Exhibit 4-F to Registration 
          Statement No. 33-49421)......................................  #
      E.  First Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 1, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-49421)..........  #
      F.  Second Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 15, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-57955)..........  # 

   10.  Material Contracts
        Not Applicable

   11.  Statement Re Computation of Per Share Earnings
        Not Applicable

# Incorporated herein by reference as indicated.


18


<PAGE>

                SOUTH CAROLINA ELECTRIC & GAS COMPANY 


Exhibit Index (Continued)

Number
   15.  Letter Re Unaudited Interim Financial Information
        Not Applicable

   18.  Letter Re Change in Accounting Principles
        Not Applicable

   19.  Report Furnished to Security Holders
        Not Applicable

   22.  Published Report Regarding Matters Submitted to
        Vote of Security Holders
        Not Applicable

   23.  Consents of Experts and Counsel
        Not Applicable

   24.  Power of Attorney
        Not Applicable

   27.  Financial Data Schedule (Filed herewith)

   99.  Additional Exhibits
        Not Applicable


19