<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   June 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 June 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.


<PAGE>    


                  SOUTH CAROLINA ELECTRIC & GAS COMPANY

                                  INDEX


PART I.  FINANCIAL INFORMATION                                            Page

   Item 1.  Financial Statements

       Consolidated Balance Sheets as of June 30, 1997    
         and December 31, 1996........................................      3

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

       Consolidated Statements of Cash Flows for the Periods
         Ended June 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



2



<PAGE>

<TABLE>

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

                                                            June 30,       December 31,
                                                              1997             1996  
                                                             (Thousands of Dollars)

ASSETS
Utility Plant:
  Electric.............................................   $3,903,414         $3,870,561
  Gas..................................................      341,037            338,095
  Transit..............................................        3,767              3,923
  Common...............................................       80,651             81,858
    Total..............................................    4,328,869          4,294,437
  Less accumulated depreciation and amortization.......    1,376,088          1,331,824 
    Total..............................................    2,952,781          2,962,613
  Construction work in progress........................      252,015            193,278
  Nuclear fuel, net of accumulated amortization........       38,497             41,006
      Utility Plant, Net...............................    3,243,293          3,196,897

Nonutility Property and Investments, net of 
  accumulated depreciation.............................       16,261             11,529

Current Assets:
  Cash and temporary cash investments..................        4,467              5,399
  Receivables - customer and other.....................      151,901            170,476
  Receivables - affiliated companies...................          557              1,021
  Inventories (at average cost):                                    
    Fuel...............................................       36,646             33,121
    Materials and supplies.............................       46,495             45,375
  Prepayments..........................................       17,003              8,758
  Deferred income taxes................................       20,025             20,025
      Total Current Assets.............................      277,094            284,175

Deferred Debits:
  Emission allowances..................................       30,524             30,457
  Environmental........................................       40,537             41,375
  Nuclear plant decommissioning fund...................       45,491             42,194
  Pension asset, net...................................       66,301             57,931
  Other................................................      246,871            294,244
      Total Deferred Debits............................      429,724            466,201
                 Total.................................   $3,966,372         $3,958,802


See notes to consolidated financial statements.




3


<PAGE>

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

                                                            June 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...      834,103           821,984
    Capital stock expense (debit).......................       (6,310)           (5,340) 
    Retained earnings...................................      421,147           415,485
      Total Common Equity...............................    1,430,273         1,413,462
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................      126,027            26,027
      Total Stockholders' Investment....................    1,556,300         1,439,489
Preferred Stock, net (subject to purchase or 
  sinking funds)........................................       41,033            43,014
Long-term debt, net.....................................    1,278,659         1,276,758
        Total Capitalization............................    2,875,992         2,759,261

Current Liabilities:
  Short-term borrowings.................................       15,300            90,000 
  Current portion of long-term debt.....................       27,729            42,755
  Current portion of preferred stock....................        2,432             2,432
  Accounts payable......................................       55,541            66,741
  Accounts payable - affiliated companies...............       17,787            31,395
  Customer deposits.....................................       15,985            14,944
  Taxes accrued.........................................       57,448            66,900
  Interest accrued......................................       21,739            21,304
  Dividends declared....................................       38,763            35,972
  Other.................................................        3,707             5,004
        Total Current Liabilities.......................      256,431           377,447

Deferred Credits:
  Deferred income taxes.................................      529,998           521,745
  Deferred investment tax credits.......................       73,450            75,073
  Reserve for nuclear plant decommissioning.............       45,491            42,194
  Other.................................................      185,010           183,082
        Total Deferred Credits..........................      833,949           822,094
                 Total .................................   $3,966,372        $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 June 30, 1997 and 1996
                                     (Unaudited)                                 
   <S>                                     <C>         <C>          <C>          <C>
   
                                            Three Months Ended         Six Months Ended 
                                                  June 30,                 June 30,   
                                              1997        1996         1997        1996   
                                                    (Thousands of Dollars) 
 OPERATING REVENUES:                                  
   Electric..............................  $247,471    $269,417     $500,095     $531,600
   Gas...................................    41,528      40,256      125,955      131,426
   Transit...............................       433         893          843        1,803 
        Total Operating Revenues.........   289,432     310,566      626,893      664,829
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation......    39,659      52,438       77,773       94,114
   Purchased power (including 
     affiliated purchases)...............    27,400      26,825       52,027       51,532
   Gas purchased from affiliate  
     for resale..........................    26,970      26,832       74,725       82,793 
   Other operation.......................    52,114      53,611      104,153      105,814
   Maintenance...........................    19,386      17,109       34,032       31,355 
   Depreciation and amortization.........    34,915      33,866       69,823       66,533 
   Income taxes..........................    15,719      19,995       43,942       52,458 
   Other taxes...........................    20,892      20,736       44,496       41,597 
        Total Operating Expenses.........   237,055     251,412      500,971      526,196 
                                   
 OPERATING INCOME........................    52,377      59,154      125,922      138,633
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction.................     1,260         938        2,577        2,191
     Other income (loss), net of 
     income taxes........................        96         313          429          589
        Total Other Income...............     1,356       1,251        3,006        2,780 

   
                                                 
 INCOME BEFORE INTEREST CHARGES..........    53,733      60,405      128,928      141,413 

                                   
 INTEREST CHARGES (CREDITS): 
   Interest expense......................    25,434      26,446       51,786       53,180 
   Allowance for borrowed funds 
     used during construction............    (1,447)     (1,238)      (2,941)      (3,048)
        Total Interest Charges, net......    23,987      25,208       48,845       50,132 
    
 NET INCOME..............................    29,746      35,197       80,083       91,281
 Preferred Stock Cash Dividends 
   (at stated rates).....................    (2,477)     (1,368)      (3,820)      (2,739)

 Earnings Available for Common Stock.....    27,269      33,829       76,263       88,542
 Retained Earnings at Beginning 
   of Period.............................   430,079     388,150      415,485      366,236
 Common Stock Cash Dividends 
   Declared..............................   (36,201)    (34,201)     (70,601)     (67,000)

 Retained Earnings at End of Period......  $421,147    $387,778     $421,147     $387,778 
 
See notes to consolidated financial statements.



5



<PAGE>

                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended June 30, 1997 and 1996
                                      (Unaudited)
  <S>                                                   <C>             <C>
                                                            Six Months Ended
                                                                June 30,    
                                                           1997           1996
                                                          (Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income........................................... $  80,083       $ 91,281
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................    69,884         66,593
    Amortization of nuclear fuel.......................    10,783          7,933 
    Deferred income taxes, net.........................     7,934         12,378 
    Pension asset......................................    (8,370)        (6,208)       
    Allowance for funds used during construction.......    (5,518)        (5,239)
    Over collections, fuel adjustment clause...........    15,836          1,436 
    Early retirements..................................     8,283         (5,920)
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............    19,039         (4,706)
      (Increase) decrease in inventories...............    (4,645)         7,951  
      Increase (decrease) in accounts payable..........   (24,808)       (32,056)
      Increase (decrease) in taxes accrued.............    (9,452)       (21,112) 
      Increase (decrease) in interest accrued..........       435           (335)
    Other, net.........................................   (10,421)       (14,520)
Net Cash Provided From Operating Activities............   149,063         97,476
CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC...........................  (94,872)        (88,136)
  Nonutility property and investments..................   (4,699)            (78)
Net Cash Used For Investing Activities.................  (99,571)        (88,214)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................   12,148          16,967
    Other long-term debt...............................     -             30,672
    Issuance of preferred stock........................   99,000            -
  Repayments:                                                                 
    First and Refunding Mortgage Bonds.................  (15,000)        (22,000)
    Repayment of bank loans............................     -             (1,886)
    Other long-term debt...............................      (25)           -    
    Preferred stock....................................   (1,981)         (1,987) 
  Dividend payments:                                                           
    Common stock.......................................  (69,000)        (64,500) 
    Preferred stock....................................   (2,630)         (2,747) 
  Short-term borrowings, net...........................  (74,700)         19,500  
  Fuel and emission allowance financings, net..........    1,784           9,921 
  Other................................................      (20)           -   
Net Cash Used For Financing Activities.................  (50,424)        (16,060)         

NET DECREASE IN CASH AND TEMPORARY                
  CASH INVESTMENTS.....................................     (932)         (6,798)
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......    5,399           6,798
CASH AND TEMPORARY CASH INVESTMENTS AT JUNE 30......... $  4,467        $   -   
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $2,941 and $3,048)...... $ 49,739        $ 52,367
                - Income taxes.........................   22,310          38,509 


See notes to consolidated financial statements.

6


</TABLE>

<PAGE>  


           SOUTH CAROLINA ELECTRIC & GAS COMPANY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        June 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 June 30, 1997, approximately $234
      million and $62 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 $83 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 $57 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 June 30, 1997
      approximately $19.5 million of retained earnings were
      restricted as to payment of cash dividends on common stock.

3.   CONTINGENCIES:

      With respect to commitments at June 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 June 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 $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 $40.5 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 
                EPA  to


8


<PAGE>

                 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 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.

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 $234
million and $62 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 June 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 six months ended June 30, 1997 and 1996:

                                                                              
                                                   Six Months Ended
                                                        June 30, 
                                                   1997         1996          
                                                 (Thousands of Dollars)

Net cash provided from operating activities     $149,063     $ 97,476 
Net cash used for financing activities           (50,424)     (16,060)
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       $104,038     $ 88,214         

Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                  $(94,872)    $(88,136)        


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 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 June 30, 1997 was 3.65.  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 and Six months ended June 30, 1997
            As Compared to the Corresponding Periods in 1996

Earnings and Dividends

     Net income for the three and six months ended June 30, 1997
decreased approximately $5.5 million and $11.2 million,
respectively, when compared to the corresponding periods in 1996. 
A lower electric margin, resulting from milder weather in the
current periods, was the primary factor 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%
of income before income taxes for the six months ended June 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 is
payable on July 1, 1997 to SCANA Corporation, the Company's parent.

Sales Margins

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

Electric operating revenues       $(21.9)     (8.1)      $(31.5)     (5.9)   
Less:  Fuel used in electric
         generation                (12.8)    (24.4)       (16.3)    (17.4) 
       Purchased power               0.6       2.2          0.5       1.0  
Margin                            $ (9.7)     (5.1)      $(15.7)     (4.1)   

     The electric sales margins decreased for the three and six
months ended June 30, 1997, when compared to the corresponding
periods 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 changes in the gas sales margins for the three and six
months ended June 30, 1997, when compared to the corresponding
periods in 1996, were as follows:

                                                                              
                                      Three Months           Six Months  
                                  Change    % Change      Change    % Change  
                                (Millions)              (Millions)
                                                                               

Gas operating revenues            $1.3        3.2         $(5.5)     (4.1)
Less:  Gas purchased for resale    0.1        0.5          (8.1)     (9.7)
Margin                            $1.2        8.5         $ 2.6       5.3     


     The gas sales margins increased slightly for the three and six
months ended June 30, 1997, when compared to the corresponding
periods 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 and six months ended June 30, 1997, when compared to the
corresponding periods in 1996, are presented in the following
table:


                                                                               
                                   Three Months             Six Months  
                                  Change    % Change      Change    % Change   
                               (Millions)              (Millions)

Other operation and maintenance   $ 0.8       1.1         $ 1.0       0.7  
Depreciation and amortization       1.0       3.1           3.3       5.0 
Income taxes                       (4.3)    (21.4)         (8.5)    (16.2)   
Other taxes                         0.2       0.8           2.9       7.0      
Total                             $(2.3)     (1.6)        $(1.3)     (0.4)     


     Other operation and maintenance expenses for the three and
six months ended June 30, 1997 increased only slightly from 1996
levels.  Increased maintenance 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 and six 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 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.



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)




August 12, 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
          (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)........   #


# 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)..........  # 

   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




19