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   September 30, 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 September 30, 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 September 30, 1997    
         and December 31, 1996........................................      3

       Consolidated Statements of Income and Retained Earnings
         for the Periods Ended September 30, 1997 and 1996............      5

       Consolidated Statements of Cash Flows for the Periods
         Ended September 30, 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




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<PAGE>  

<TABLE>

                                             PART I
                                      FINANCIAL INFORMATION
                              SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   CONSOLIDATED BALANCE SHEETS
                            As of September 30, 1997 and December 31, 1996
                                          (Unaudited)

                                                          September 30,    December 31,
                                                              1997             1996  
  <S>     <C>                                             <C>                <C>
                                                             (Thousands of Dollars)

ASSETS
Utility Plant:
  Electric.............................................   $3,923,313         $3,870,561
  Gas..................................................      342,882            338,095
  Transit..............................................        3,819              3,923
  Common...............................................       74,650             81,858
    Total..............................................    4,344,664          4,294,437
  Less accumulated depreciation and amortization.......    1,393,827          1,331,824 
    Total..............................................    2,950,837          2,962,613
  Construction work in progress........................      265,314            193,278
  Nuclear fuel, net of accumulated amortization........       53,457             41,006
      Utility Plant, Net...............................    3,269,608          3,196,897

Nonutility Property and Investments, net of 
  accumulated depreciation.............................       16,235             11,529

Current Assets:
  Cash and temporary cash investments..................       37,347              5,399
  Receivables - customer and other.....................      166,027            170,476
  Receivables - affiliated companies...................        1,014              1,021
  Inventories (at average cost):                                    
    Fuel...............................................       28,341             33,121
    Materials and supplies.............................       46,683             45,375
  Prepayments..........................................       11,469              8,758
  Deferred income taxes................................       20,025             20,025
      Total Current Assets.............................      310,906            284,175

Deferred Debits:
  Emission allowances..................................       30,555             30,457
  Environmental........................................       33,940             41,375
  Nuclear plant decommissioning fund...................       47,140             42,194
  Pension asset, net...................................       69,928             57,931
  Other................................................      242,847            294,244
      Total Deferred Debits............................      424,410            466,201
                 Total.................................   $4,021,159         $3,958,802


See notes to consolidated financial statements.



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<PAGE>

                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 CONSOLIDATED BALANCE SHEETS
                         As of September 30, 1997 and December 31, 1996
                                         (Unaudited)
    <S>          <C>    <S>      <C>                       <C>               <C>

                                                          September 30,     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...      834,088           821,984
    Capital stock expense...............................       (6,296)           (5,340) 
    Retained earnings...................................      454,620           415,485
      Total Common Equity...............................    1,463,745         1,413,462
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................      126,027            26,027
      Total Stockholders' Investment....................    1,589,772         1,439,489
Preferred Stock, net (subject to purchase or 
  sinking funds)........................................       40,093            43,014
Long-term debt, net.....................................    1,246,585         1,276,758
        Total Capitalization............................    2,876,450         2,759,261
Current Liabilities:
  Short-term borrowings.................................         -               90,000 
  Current portion of long-term debt.....................       47,735            42,755
  Current portion of preferred stock....................        2,442             2,432
  Accounts payable......................................       66,334            66,741
  Accounts payable - affiliated companies...............       17,967            31,395
  Customer deposits.....................................       16,311            14,944
  Taxes accrued.........................................       93,850            66,900
  Interest accrued......................................       25,015            21,304
  Dividends declared....................................       39,167            35,972
  Other.................................................        6,643             5,004
        Total Current Liabilities.......................      315,464           377,447

Deferred Credits:
  Deferred income taxes.................................      525,567           521,745
  Deferred investment tax credits.......................       72,639            75,073
  Reserve for nuclear plant decommissioning.............       47,140            42,194
  Postretirement benefits...............................       46,197            37,344 
  Other.................................................      137,702           145,738
        Total Deferred Credits..........................      829,245           822,094
                 Total .................................   $4,021,159        $3,958,802
                              

See notes to consolidated financial statements.



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<PAGE>

 
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     For the Periods Ended September 30, 1997 and 1996
                                     (Unaudited)                                 
   <S>     <C>                             <C>         <C>        <C>           <C>
   
                                             Three Months Ended       Nine Months Ended 
                                                September 30,           September 30,  
                                              1997        1996        1997         1996   
                                                    (Thousands of Dollars) 
 OPERATING REVENUES:                                  
   Electric..............................  $340,371    $329,078   $  840,465    $ 860,677
   Gas...................................    36,026      34,575      161,981      166,002
   Transit...............................       395         917        1,239        2,720
        Total Operating Revenues.........   376,792     364,570    1,003,685    1,029,399
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation......    57,983      53,138      135,756      147,252
   Purchased power (including 
     affiliated purchases)...............    28,587      29,410       80,614       80,941
   Gas purchased from affiliate  
     for resale..........................    25,784      25,090      100,509      107,884 
   Other operation.......................    58,081      56,334      162,234      162,148
   Maintenance...........................    15,215      16,053       49,249       47,408 
   Depreciation and amortization.........    34,675      33,950      104,498      100,483 
   Income taxes..........................    41,180      39,738       85,121       92,196 
   Other taxes...........................    22,494      20,622       66,990       62,218 
        Total Operating Expenses.........   283,999     274,335      784,971      800,530 
                                   
 OPERATING INCOME........................    92,793      90,235      218,714      228,869
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction.................     1,394       1,091        3,971        3,282
   Other income (loss), net of 
     income taxes........................     1,627        (409)       2,056          179
        Total Other Income...............     3,021         682        6,027        3,461 

   
                                                 
 INCOME BEFORE INTEREST CHARGES..........    95,814      90,917      224,741      232,330 

                                   
 INTEREST CHARGES (CREDITS): 
   Interest expense......................    24,824      26,171       76,610       79,351 
   Allowance for borrowed funds 
     used during construction............    (1,599)     (1,376)      (4,540)      (4,424)
        Total Interest Charges, net......    23,225      24,795       72,070       74,927 
    
 NET INCOME..............................    72,589      66,122      152,671      157,403
 Preferred Stock Cash Dividends 
   (at stated rates).....................    (2,916)     (1,351)      (6,736)      (4,090)
 Earnings Available for Common Stock.....    69,673      64,771      145,935      153,313
 Retained Earnings at Beginning 
   of Period.............................   421,147     387,778      415,485      366,236
 Common Stock Cash Dividends 
   Declared..............................   (36,200)    (34,200)    (106,800)    (101,200)
 Retained Earnings at End of Period......  $454,620    $418,349   $  454,620   $  418,349 
 
See notes to consolidated financial statements.


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<PAGE>

                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended September 30, 1997 and 1996
                                      (Unaudited)
  <S>       <C>                                         <C>             <C>
                                                           Nine Months Ended
                                                              September 30,  
                                                           1997           1996
                                                          (Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income........................................... $ 152,671       $157,403
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................   104,589        100,572
    Amortization of nuclear fuel.......................    16,266         13,282 
    Deferred income taxes, net.........................     3,358         10,040 
    Pension asset......................................   (11,997)       (11,167)
    Allowance for funds used during construction.......    (8,511)        (7,706)
    Over collections, fuel adjustment clause...........     9,612         (2,025)
    Early retirements..................................    12,391         (4,766)
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............     4,457         (9,047)
      (Increase) decrease in inventories...............     3,472         11,423  
      Increase (decrease) in accounts payable..........   (13,833)       (35,023)
      Increase (decrease) in taxes accrued.............    26,950         25,674  
      Increase (decrease) in interest accrued..........     3,711          2,754 
    Other, net.........................................     8,656          7,242 
Net Cash Provided From Operating Activities............   311,792        258,656

CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC...........................  (157,660)      (128,386)
  Nonutility property and investments..................    (4,693)          (137)
Net Cash Used For Investing Activities.................  (162,353)      (128,523)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................    12,148         32,796
    Other long-term debt...............................     1,200           -   
    Issuance of preferred stock........................    99,000           -
  Repayments:                                                                 
    First and Refunding Mortgage Bonds.................   (15,000)       (22,000)
    Bank loans.........................................      -            (1,886)
    Other long-term debt...............................   (10,096)        (1,382)
    Preferred stock....................................    (2,911)        (2,876) 
  Dividend payments:                                                           
    Common stock.......................................  (105,200)       (98,700) 
    Preferred stock....................................    (5,141)        (4,111) 
  Short-term borrowings, net...........................   (90,000)       (16,500) 
  Fuel and emission allowance financings, net..........    (1,351)        (3,724)
  Other................................................      (140)          -   
Net Cash Used For Financing Activities.................  (117,491)      (118,383)         

NET DECREASE IN CASH AND TEMPORARY                
  CASH INVESTMENTS.....................................    31,948         11,750 
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......     5,399          6,798
CASH AND TEMPORARY CASH INVESTMENTS AT SEPTEMBER 30.... $  37,347       $ 18,548
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $4,540 and $4,424)...... $  70,593       $ 74,535
                - Income taxes.........................    51,169         50,576 

NONCASH INVESTING ACTIVITIES:
  City of Charleston Franchise Fee......................     -            25,000 

See notes to consolidated financial statements.

</TABLE>

6

<PAGE>  


            SOUTH CAROLINA ELECTRIC & GAS COMPANY
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      September 30, 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 September 30, 1997, approximately
             $222 million and $57 million of regulatory assets and
             liabilities, respectively, including amounts recorded for
             deferred income tax assets and liabilities of approximately
             $104 million and $48 million, respectively.  The electric
             regulatory assets of approximately $77 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 $51 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 September 30, 1997
             approximately $20.8 million of retained earnings were
             restricted as to payment of cash dividends on common stock.

3.   CONTINGENCIES:

             With respect to commitments at September 30, 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 September 30,
             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 $2.0 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,
             accrued and actually expended to date for site assessments and
             cleanup relate primarily to regulated operations; such amounts
             are deferred 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 Company has also
             recovered portions of its environmental liabilities through
             settlements with various insurance carriers.  At September 30,
             1997, the balance of the deferral, net of amounts recovered
             through rates and insurance settlements received to date, was
             approximately $33.9 million.  The deferral includes the costs
             estimated to be associated with the matters discussed below.



8



<PAGE>

                          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 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 is recovering 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 the sites to monitor the nature and
                          extent of the residual contamination.
  
              C.  Year 2000
 
              The Company is currently evaluating the impact of the year 2000
              on its computer systems and applications and is nearing
              completion of an impact assessment. The Company has also begun
              evaluating embedded processors located in field operations
              areas for the purpose of identifying those that will have to
              be modified or replaced. The Company believes that all required
              modifications and replacements can be implemented in time to
              prevent problems with financial or operational systems related
              to date codes. Although an estimate of the cost of the required
              charges is not available at this time, management expects the
              evaluation of this issue to be completed by early 1998.

4.  SUBSEQUENT EVENTS

              On October 28, 1997 SCE&G Trust I (the "Trust"), a Delaware
              statutory business trust and a subsidiary of SCE&G, issued $50
              million of 7.55% trust preferred securities.  The Trust used
              the proceeds from the sale to purchase unsecured 7.55% junior
              subordinated debentures of SCE&G.  SCE&G will use the funds to
              redeem certain series of its preferred stock.  The financial
              statements of the Trust will be consolidated with those of the
              Company.

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 Federal Energy Regulatory Commission
(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,  the accelerated recovery of the Company's electric
regulatory assets and the shift, for retail ratemaking purposes
only, of depreciation reserves from transmission and distribution
assets to nuclear production assets.  The Company has also
established open access transmission tariffs and is selling 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 has
obtained long term power supply contracts with a significant
portion of its industrial customers.  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 $222
million and $57 million of regulatory assets and liabilities,
respectively, including amounts recorded for deferred income tax
assets  and  liabilities  of  approximately $104 million and $48
million, respectively, on  its balance sheet at September 30, 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
produces additional revenues of approximately $67.5 million
annually.  The increase was 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 or .87%, based on a test year, 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 nine months ended September 30, 1997 and 1996:

                                                                              
                                                   Nine Months Ended
                                                     September 30,
                                                   1997         1996          
                                                 (Thousands of Dollars)

Net cash provided from operating activities     $ 311,792    $ 258,656
Net cash used for financing activities           (117,491)    (118,383)
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       $ 199,700    $ 147,071        

Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                  $ 157,660    $ 128,386        


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 were used to reduce short term indebtedness incurred for the
Company's construction program and for general corporate purposes.

     On October 28, 1997 SCE&G Trust I (the "Trust"), a Delaware
statutory business trust and a subsidiary of the Company, issued
$50 million of 7.55% trust preferred securities.  The Trust used
the proceeds from the sale to purchase unsecured 7.55% junior
subordinated debentures of the Company.  The Company will use the
funds to redeem certain series of its preferred stock.  The
financial statements of the Trust will be consolidated with those
of the Company.

     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 (1996-1999).  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 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 September 30, 1997 was 3.78. 
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.

     The Company is currently evaluating the impact of the year
2000 on its computer systems and applications and is nearing
completion of an impact assessment. The Company has also begun
evaluating embedded processors located in field operations areas
for the purpose of identifying those that will have to be modified
or replaced. The Company believes that all required modifications
and replacements can be implemented in time to prevent problems
with financial or operational systems related to date codes.
Although an estimate of the cost of the required charges is not
available at this time, management expects the evaluation of this
issue to be completed by early 1998.




12


<PAGE>


           SOUTH CAROLINA ELECTRIC & GAS COMPANY
                   Results of Operations
    For the Three and Nine Months ended September 30, 1997
       As Compared to the Corresponding Periods in 1996

Earnings and Dividends

     Net income for the three months ended September 30, 1997
increased approximately $6.5 million when compared to the
corresponding period in 1996.  The increase in the electric margin,
attributable primarily to customer growth and other economic
factors, more than offset the impact of higher operating costs. 
Net income for the nine months ending September 30, 1997 decreased
by approximately $4.7 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 for the
decline 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 nine months ended
September 30, 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 was paid
on July 1, 1997 to SCANA Corporation, the Company's parent.
 
     On August 20, 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  September  30, 1997.  The
dividend was paid on October 1, 1997 to SCANA Corporation, the
Company's parent.

      On October 21, 1997 the Company's Board of Directors
authorized the payment of a dividend on common stock  of
approximately $36.6 million for the quarter ended December 31,
1997.  The dividend is payable on January 1, 1998 to SCANA
Corporation, the Company's parent.

Sales Margins

     The changes in the electric sales margins for the three and
nine months ended September 30, 1997, when compared to the
corresponding periods in 1996, were as follows:
                                                                             
                                                                             
                                    Three Months           Nine Months  
                                  Change    % Change    Change    % Change   
                                (Millions)            (Millions)

Electric operating revenues       $11.3       3.4        $(20.2)     (2.3)   
Less:  Fuel used in electric
         generation                 4.8       9.1         (11.5)     (7.8) 
       Purchased power             (0.8)     (2.8)         (0.3)     (0.4) 
Margin                            $ 7.3       2.9        $ (8.4)     (1.3)   

13



<PAGE>

     The electric sales margin increased for the three months ended
September 30, 1997 when compared to the corresponding period in
1996 primarily as a result of economic and customer growth.
                                  
     The electric sales margin decreased for the nine months ended
September 30, 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.
                                 
     The changes in the gas sales margins for the three and nine
months ended September 30, 1997, when compared to the corresponding
periods in 1996, were as follows:

                                                                              
                                      Three Months           Nine Months  
                                  Change    % Change      Change    % Change  
                                (Millions)              (Millions)
                                                                               

Gas operating revenues            $1.5       4.2          $(4.0)      (2.4)
Less:  Gas purchased for resale    0.7       2.8           (7.4)      (6.8)
Margin                            $0.8       8.0          $ 3.4        5.8    

     The gas sales margins increased for the three and nine months
ended September 30, 1997, when compared to the corresponding
periods in 1996 primarily as a result of higher margins on sales to
interruptible customers.
Increased sales to interruptible customers on a year-to-date basis
were attributable to fewer curtailments.

 Other Operating Expenses
     Changes in other operating expenses, including taxes, for the
three and nine months ended September 30, 1997, when compared to
the corresponding periods in 1996, are presented in the following
table:

                                                                               
                                     Three Months             Nine Months  
                                  Change    % Change      Change    % Change   
                               (Millions)              (Millions)

Other operation and maintenance   $0.9       1.3          $ 1.9      0.9   
Depreciation and amortization      0.7       2.1            4.0      4.0  
Income taxes                       1.4       3.6           (7.1)    (7.7)    
Other taxes                        1.9       9.1            4.8      7.7       
Total                             $4.9       3.0          $ 3.6      0.8       

     Other operation and maintenance expenses for the three and
nine months ended September 30, 1997 increased only slightly from
1996 levels.  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 largely
offset increases in costs at electric generating plants and other
operating costs.  The increases in depreciation and amortization
expenses for the three and nine months' comparisons reflect the
addition of the Cope Plant and other additions to plant in
service.  The changes in income tax expense reflect the changes
in operating income.  The increases 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 and partially offset by a reduction in the
1997 property tax assessment.  Recovery of the Cope Plant
property taxes is provided for in a retail electric rate increase
that became effective in January 1997.

Interest Charges

Interest expense, excluding the debt component of AFC, for the
three and nine months ended September 30, 1997 decreased $1.3
million and $2.7 million, respectively, when compared to the
corresponding periods in 1996 primarily as a result of reductions
in outstanding debt.

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)




November 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
          (Exhibit 3-L to Form 10-Q for the quarter ended
          March 31, 1997).............................................  # 
       M. Articles of Amendment dated April 22, 1997
          (Exhibit 3-M to Form 10-Q for the quarter ended
          June 30, 1997)..............................................  # 
    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)........   #



# Incorporated herein by reference as indicated.

17



<PAGE>

                   SOUTH CAROLINA ELECTRIC & GAS COMPANY           Sequentially 
                                EXHIBIT INDEX                        Numbered  
Number                                                                 Pages 
       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................................................   #
    4.  (Continued)
    December 1, 1950   Exhibit 2-D to Registration No. 2-26459
    July 1, 1951       Exhibit 2-E to Registration No. 2-26459
    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)..........  #

# Incorporated herein by reference as indicated.

18


<PAGE>
                SOUTH CAROLINA ELECTRIC & GAS COMPANY 

Exhibit Index (Continued)

Number
      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)..........   # 
      G.  Trust Agreement for SCE&G Trust I  (Filed as
          Exhibit 4-C to Registration Statement No. 
          333-37787 and 333-37787-01)..................................   #
      H.  Certificate of Trust for SCE&G Trust I (Filed as
          Exhibit 4-B to Registration Statement No. 
          333-37787 and 333-37787-01)..................................   #
      I.  Form of Junior Subordinated Indenture for SCE&G Trust I 
          (Filed as Exhibit 4-A to Registration Statement
          No. 333-37787 and 333-37787-01)..............................   #
      J.  Form of Guarantee Agreement for SCE&G Trust I
          (Filed as Exhibit 4-F to Registration Statement
          No. 333-37787 and 333-37787-01)..............................   #
      K.  Form of Amended & Restated Trust Agreement for SCE&G 
          Trust I (Filed as Exhibit 4-D to Registration Statement
          No. 333-37787 and 333-37787-01)..............................   #
 
   10.  Material Contracts
        Not Applicable
   11.  Statement Re Computation of Per Share Earnings
        Not Applicable

   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



# Incorporated herein by reference as indicated.

19