===============================================================================
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

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

                For the quarterly period ended September 30, 2000

                                       OR

              ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        For the Transition Period from to


Commission        Registrant, State of Incorporation,       I.R.S. Employer
File Number       Address  and  Telephone Number            Identification No.
1-8809            SCANA Corporation                         57-0784499
                  (A South Carolina Corporation)
                  1426 Main Street
                  Columbia, South Carolina 29201
                  (803) 217-9000

1-3375            South Carolina Electric & Gas Company     57-0248695
                  (A South  Carolina Corporation)
                  1426 Main Street
                  Columbia, South Carolina 29201
                  (803) 217-9000

         Indicate  by check mark  whether  the  registrants:  (1) have 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
registrants  were required to file such  reports),  and (2) have been subject to
such filing requirements for the past 90 days. Yes X No

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

                             Description of         Shares Outstanding
Registrant                   Common Stock           at October 31, 2000

 SCANA Corporation           Without Par Value          104,729,131

South Carolina Electric      Par Value $4.50 Per Share  40,296,1411
  & Gas Company

1Held beneficially and of record by SCANA Corporation.

         This combined Form 10-Q is separately  filed by SCANA  Corporation  and
South Carolina Electric & Gas Company.  Information contained herein relating to
SCANA  Corporation  or any of its direct or  indirect  subsidiaries,  other than
South  Carolina  Electric & Gas  Company  and its  consolidated  operations,  is
provided  solely by SCANA  Corporation  and shall be deemed not  included in the
Form 10-Q of South Carolina Electric & Gas Company.


================================================================================


<PAGE>



                                                       INDEX


Page
PART 1.  FINANCIAL INFORMATION

SCANA Corporation Financial Section........................................  3

Item 1.  Financial Statements

Condensed Consolidated Balance Sheets as of  September 30, 2000 and
    December 31, 1999 ....................................................  4

Condensed Consolidated Statements of Income and Retained Earnings for the
    Periods Ended September 30, 2000 and 1999.............................  6

Condensed Consolidated Statements of Cash Flows for the Periods Ended
    September 30, 2000 and 1999............................................ 7

Notes to Condensed Consolidated Financial Statements....................... 8

Item 2.  Management's Discussion and Analysis of Financial Condition and
          Results of Operations.............................................16

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.........23

South Carolina Electric & Gas Company Financial Section.....................25

Item 1.  Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2000 and
    December 31, 1999 ....................................................  26

Condensed Consolidated Statements of Income and Retained Earnings for the
    Periods Ended September 30, 2000 and 1999...............................28

Condensed Consolidated Statements of Cash Flows for the Periods Ended
   September 30, 2000 and 1999..............................................29

Notes to Condensed Consolidated Financial Statements........................30

Item 2.  Management's Discussion and Analysis of Financial Condition and
           Results of Operations............................................35

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.........40


PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings..................................................41

Item 4.  Submission of Matters to a Vote of Security Holders................41

Item 6.  Exhibits and Reports on Form 8-K...................................41

Signatures..................................................................42

Exhibit Index...............................................................44






<PAGE>















                                SCANA CORPORATION
                                FINANCIAL SECTION










<TABLE>
<CAPTION>

                                               PART I. FINANCIAL INFORMATION


Item 1.  Financial Statements


                                SCANA CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


------------------------------------------------------------------------------ ------------------
                                                              September 30,      December 31,
                                                                  2000               1999
------------------------------------------------------------------------------ ------------------
Assets                                                                   (Millions of Dollars)
Utility Plant:
<S>                                                              <C>                <C>
    Electric                                                     $4,671             $4,633
    Gas                                                            1,407                632
    Other                                                            182                191
------------------------------------------------------------------------------ ------------------
        Total                                                      6,260              5,456
    Less accumulated depreciation and amortization                 2,188              1,829
------------------------------------------------------------------------------ ------------------
        Total                                                      4,072              3,627
    Construction work in progress                                    275               159
    Nuclear fuel, net of accumulated amortization                     54                 43
    Acquisition adjustment, net of accumulated amortization          479                 22
------------------------------------------------------------------------------ ------------------
        Utility Plant, Net                                         4,880              3,851
------------------------------------------------------------------------------ ------------------

Nonutility Property, net of accumulated depreciation                  70                 61
Investments                                                          785                938
------------------------------------------------------------------------------ ------------------
       Nonutility Property and Investments, Net                      855                999

Current Assets:
    Cash and temporary cash investments                              142                116
    Receivables (including unbilled revenues)                        411                320
    Inventories (at average cost):
        Fuel                                                          130                82
        Materials and supplies                                        56                 51
    Prepayments                                                       20                 18
    Deferred income taxes                                             14                 16
------------------------------------------------------------------------------ ------------------
        Total Current Assets                                         773                603
------------------------------------------------------------------------------ ------------------

Deferred Debits:
    Emission allowances                                               26                  31
    Environmental                                                     31                  24
    Nuclear plant decommissioning fund                                70                  64
    Pension asset, net                                               186                 144
    Other regulatory assets                                          177                 175
    Other                                                            130                 120
------------------------------------------------------------------------------ ------------------
        Total Deferred Debits                                       620                 558
------------------------------------------------------------------------------ ------------------
            Total                                                $7,128              $6,011
============================================================================== ==================

</TABLE>






<PAGE>




<TABLE>
<CAPTION>



                                                       SCANA CORPORATION
                                             CONDENSED CONSOLIDATED BALANCE SHEETS
                                                          (Unaudited)



------------------------------------------------------------------------------------ ------------------- -----------------
                                                                                       September 30,       December 31,
                                                                                            2000               1999
------------------------------------------------------------------------------------ ------------------- -----------------
Capitalization and Liabilities                                                              (Millions of Dollars)
Stockholders' Investment:
<S>                                                                                        <C>                <C>
    Common Equity                                                                          $2,068             $2,099
    Preferred stock (not subject to purchase or sinking funds)                                106                106
------------------------------------------------------------------------------------ ------------------- -----------------
        Total Stockholders' Investment                                                      2,174              2,205
Preferred Stock, net (subject to purchase or sinking funds)                                    11                 11
     SCE&G-Obligated Mandatorily Redeemable Preferred Securities of SCE&G's
  Subsidiary Trust, SCE&G Trust I, holding solely $50 million principal amount
    of the 7.55%
    Junior Subordinated Debentures of SCE&G, due 2027                                          50                 50
Long-Term Debt, net                                                                         2,860              1,563
------------------------------------------------------------------------------------ ------------------- -----------------
        Total Capitalization                                                                5,095              3,829
------------------------------------------------------------------------------------ ------------------- -----------------

Current Liabilities:
    Short-term borrowings                                                                      264               266
    Current portion of long-term debt                                                           40               303
    Accounts payable                                                                           212               189
    Customer deposits                                                                           24                16
    Taxes accrued                                                                               74                86
    Interest accrued                                                                            57                29
    Dividends declared                                                                          32                31
    Other                                                                                        7                13
------------------------------------------------------------------------------------ ------------------ -----------------
       Total Current Liabilities                                                               710               933
------------------------------------------------------------------------------------ ------------------- -----------------

Deferred Credits:
    Deferred income taxes                                                                     825                805
    Deferred investment tax credits                                                           116                116
    Postretirement benefits                                                                   112                 98
    Reserve for nuclear plant decommissioning                                                  70                 64
    Regulatory liabilities                                                                     70                 64
    Other                                                                                     130                 102
------------------------------------------------------------------------------------ ------------------- -----------------
        Total Deferred Credits                                                              1,323               1,249
------------------------------------------------------------------------------------ ------------------- -----------------
           Total                                                                           $7,128              $6,011
==================================================================================== =================== =================

See Notes to Condensed Consolidated Financial Statements.



</TABLE>
<TABLE>





<PAGE>


                                                 SCANA CORPORATION
                         CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                                                    (Unaudited)
     -------------------------------------------------- ------------------------- ---------------------------
                                                           Three Months Ended         Nine Months Ended
                                                             September 30,              September 30,
                                                           2000         1999          2000          1999
     -------------------------------------------------- ----------- ------------- ------------- -------------
                                                          (Millions of Dollars, Except Per Share Amounts)
     Operating Revenues:
<S>                                                       <C>            <C>          <C>          <C>
         Electric                                         $ 397          $   393      $1,011       $   953
         Gas - Regulated                                                     87          635           299
                                                           159
         Gas - Nonregulated                                                  78          654           287
                                                           260
     -------------------------------------------------- ----------- -------------- ------------ -------------
             Total Operating Revenues                                      558         2,300         1,539
                                                           816
     -------------------------------------------------- ----------- -------------- ------------ -------------
     Operating Expenses:
         Fuel used in electric generation                                   87           228           221
                                                            84
         Purchased power                                                    14            36            29
                                                            19
         Gas purchased for resale                                          147         1,023           493
                                                           366
         Other operation and maintenance                                   105           346           299

         Depreciation and amortization                     118               43          162           126
                                                            54
         Other taxes                                                         27           88          79
                                                            29
     -------------------------------------------------- ----------- -------------- ------------ -------------
             Total Operating Expenses                      670              423        1,883      1,247
     -------------------------------------------------- ------- --------- ----- ------------ -------------
     Operating Income                                      46               135          417        292
     -------------------------------------------------- ----------- -------------- ------------ -------------

     Other Income, including allowance for equity funds
          used during construction                         10                13           29          29
     -------------------------------------------------- ----------- -------------- ------------ -------------

Income Before Interest Charges, Income Taxes, Preferred Stock
     Dividends
        and Cumulative Effect of Accounting Change         156              148          446        321
     ----------------------------------------------------------- -------------- ------------ -------------

     Interest Charges:
         Interest expense on long-term debt                 55              34           150         97
         Other interest expense, net of  allowance for
            borrowed funds used during construction          2              17             8           3
     ---------------------------------------------------------- -------------- ------------ -------------
             Total Interest Charges, Net                    58              36           167         105
     ---------------------------------------------------------- -------------- ------------ -------------

     Income Before Income Taxes, Preferred Stock Dividends
     and Cumulative Effect of Accounting Change             98             112           279         216
     Income Taxes                                           36              42           108          79
     ------------------------------------------------------------------------- ----------- -------------- ------------ -------------

     Income Before Preferred Stock Dividends
      and Cumulative Effect of Accounting Change            62              70           171          137
     Preferred Dividend Requirement of SCE&G - Obligated Mandatorily
         Redeemable Preferred Securities                     1               1             3           3
     ------------------------------------------------------------------------- ----------- -------------- ------------ -------------

     Income Before Cash Dividends on Preferred Stock of Subsidiary
        and Cumulative Effect of Accounting Change          61              69           168        134
     ------------------------------------------------------------------------- ----------- -------------- ------------ -------------
     Cash Dividends on Preferred Stock of Subsidiary
       (At Stated Rates)                                   (2)              (2)          (6)          (6)
     ------------------------------------------------------------------------- ----------- -------------- ------------ -------------
     Income Before Cumulative Effect of Accounting Change  59               67           162        128
     Cumulative Effect of Accounting Change, net of taxes
       (Note 2)                                             -                -            29           -
      ------------------------------------------------------------------------- ----------- -------------- --
     Net Income                                            59               67           191         128
     Retained Earnings at Beginning of Period             792              659           720         678
     Common Stock Cash Dividends Declared                 (30)             (28)         (90)        (108)

     ============================================================== ============== ============ =============
     Retained Earnings at End of Period                   $821          $  698          $821     $   698

     ============================================================== ============== ============ =============

     Earnings Per Share of Common Stock:
       Basic and diluted
          Before cumulative effect of accounting change   $ .56         $ .65      $1.55        $  1.23
          Cumulative effect of accounting change             1              -        .28              -

   Basic and diluted earnings per share                      .56          .65       1.83            1.23
          Weighted average shares outstanding (millions)   104.7         103.6     104.5           103.6

     Cash Dividends Declared Per Share of Common Stock     $.2875      $ .2750    $.8625          $1.045
     ============================================================== ============== ============ =============
     See Notes to Condensed Consolidated Financial Statements.

</TABLE>


<PAGE>

<TABLE>

                                                 SCANA CORPORATION
                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     (Unaudited)
---------------------------------------------------------------------------------------------- ---------------------------
                                                                                                   Nine Months Ended
                                                                                                     September 30,
                                                                                                    2000         1999
---------------------------------------------------------------------------------------------- ------------- -------------

                                                  (Millions of Dollars)
Cash Flows From Operating Activities:
<S>                                                                                                 <C>          <C>
  Net income                                                                                        $191         $128
    Adjustments to reconcile net income to net cash provided from operating activities:
        Cumulative effect of accounting change                                                       (29)          -
        Depreciation and amortization                                                                170          133
        Amortization of nuclear fuel                                                                  15            13
        Allowance for funds used during construction                                                   (6)         (6)
        Over (under) collections, fuel adjustment clauses                                               6          (8)
        Changes in certain assets and  liabilities,  net of effect of subsidiary
           acquisition:
            (Increase) decrease in receivables                                                         25          (4)
            (Increase) decrease in inventories                                                        (16)        (11)
            Increase (decrease) in deferred income taxes, net                                         17            10
            (Increase) decrease in pension asset                                                     (42)          (21)
            (Increase) decrease in other regulatory assets                                            (4)           31
            Increase (decrease) in regulatory liabilities                                               6            4
            Increase (decrease) in post-retirement benefits                                           10             8
            Increase (decrease) in accounts payable                                                   (27)        (77)
            Increase (decrease) in taxes accrued                                                      (35)         20
        Other, net                                                                                     44         (50)
----------------------------------------------------------------------------------------------- ------------ -------------
    Net Cash Provided From Operating Activities                                                      325         170
----------------------------------------------------------------------------------------------- ------------ -------------

Cash Flows From Investing Activities:
    Utility property additions and construction expenditures, net of AFC                            (204)       (167)
    Increase in other property and investments                                                        (35)        (73)
    Purchase of subsidiary,  net of cash acquired                                                   (693)          -
    Sale of subsidiary assets                                                                           1          17
----------------------------------------------------------------------------------------------- ------------ -------------
    Net Cash Used For Investing Activities                                                          (931)       (223)
----------------------------------------------------------------------------------------------- ------------ -------------

Cash Flows From Financing Activities:
    Proceeds:
        Issuance of  First Mortgage Bonds                                                            148           99
        Issuance of notes and loans                                                                  998         150
    Repayments:
        First Mortgage Bonds                                                                        (100)         -
        Notes and loans                                                                             (174)         (44)
        Other long-term debt                                                                         -             (9)
    Dividend payments:
        Common stock                                                                                 (94)       (120)
        Preferred stock of subsidiary                                                                 (6)           (6)
    Short-term borrowings, net                                                                      (140)         (33)
    Fuel and emission allowance financings, net                                                      -             11
----------------------------------------------------------------------------------------------- ------------ -------------
    Net Cash Provided From  Financing Activities                                                     632           48
----------------------------------------------------------------------------------------------- ------------ -------------
Net Increase (Decrease) In Cash And Temporary Cash Investments                                        26           (5)
Cash And Temporary Cash Investments At January 1                                                     116           62
----------------------------------------------------------------------------------------------- ------------ -------------
Cash And Temporary Cash Investments At September 30                                                $142            $  57
=============================================================================================== ============ =============

Supplemental Cash Flow Information:
    Cash paid for - Interest (net of capitalized interest of $4 for 2000 and $3 for 1999)          $134            $  94
                           - Income taxes                                                            109              37
    Noncash investing activities
                           - Unrealized gain/(loss) on securities available for sale, net of        (131)            156
taxes

    In  conjunction  with the  acquisition  of Public  Service  Company of North
Carolina, Inc., liabilities were assumed as follows:
                Fair value of assets acquired                 $ 1,171
                Cash paid for capital stock              (212)
                Stock issued for consideration                    (475)
                                                              -------- -----
                     Liabilities assumed                      $   484
                                                              ===========

See Notes to Condensed Consolidated Financial Statements.


</TABLE>

<PAGE>


                                SCANA CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000
                                   (Unaudited)

         The  following  notes should be read in  conjunction  with the Notes to
Consolidated Financial Statements appearing in SCANA Corporation's (the Company)
Annual  Report on Form 10-K for the year  ended  December  31,  1999.  These are
interim  financial  statements,  and  due to the  seasonality  of the  Company's
business,  the amounts  reported in the  Condensed  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 except as described in Notes 2, 3
and 4, 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). This accounting standard requires
        cost-based  rate-regulated  utilities 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, 2000,  approximately $209 million and $71
        million of regulatory  assets and liabilities,  respectively,  including
        amounts  recorded  for  deferred  income tax assets and  liabilities  of
        approximately $131 million and $52 million,  respectively.  The electric
        and gas  regulatory  assets  (excluding  deferred  income tax assets) of
        approximately  $25  million  and $52  million,  respectively,  are being
        recovered  through  rates,  and the Public  Service  Commission of South
        Carolina (PSC) has approved  accelerated  recovery of  approximately  $2
        million of the electric regulatory 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
        could 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 that a write-off  would be required,
        but it is not expected  that cash flows or financial  position  would be
        materially affected.

        B.  Comprehensive Income

          Comprehensive  income  includes  net income  and all other  changes in
          equity except those resulting from investments by and distributions to
          stockholders.  Comprehensive income of the Company totaled $39 million
          and $60  million  for the three and nine months  ended  September  30,
          2000,  respectively,  and $143  million and $284  million for the same
          periods  in  1999.  Other  comprehensive  income  included  unrealized
          gains/(losses)  on securities  available for sale of $(20) million and
          $(131) million for the three and nine months ended September 30, 2000,
          respectively, and $76 million and $156 million for the same periods in
          1999.  Accumulated other  comprehensive  income of the Company totaled
          $205 million and $336  million as of  September  30, 2000 and December
          31,1999, respectively.

        C.   Recently Issued Accounting Standard and Bulletin

        In June 1998 the  Financial  Accounting  Standards  Board (FASB)  issued
        Statement of Financial  Accounting Standards (SFAS) No. 133, "Accounting
        for Derivative  Instruments  and Hedging  Activities." In June 2000, the
        FASB issued SFAS No. 138, which amends certain provisions of SFAS 133 to
        expand the normal  purchase and sale exemption for supply  contracts and
        to redefine  interest  rate risk to reduce  sources of  ineffectiveness,
        among other things.  The Company has appointed a team to implement  SFAS
        133,  as  amended.  This  team has been  educating  both  financial  and
        non-financial  personnel,  inventorying contracts and addressing various
        other SFAS 133 related issues. The Company utilizes various  derivatives
        in its risk  management  activities,  including  swaps  and  commodities
        futures.  The Company  will adopt SFAS 133,  as  amended,  on January 1,
        2001. The Company is  determining  the impact of adoption of SFAS 133 on
        its consolidated results of operations and financial position.  Adoption
        of this statement should have no impact on consolidated cash flows.



<PAGE>


        In December 1999 the  Securities  and Exchange  Commission  (SEC) issued
        Staff  Accounting  Bulletin No 101,  "Revenue  Recognition  in Financial
        Statements."  In June 2000 the SEC  amended  the  Bulletin  to delay the
        implementation  date until no later than the  fourth  fiscal  quarter of
        fiscal years  beginning  after December 15, 1999. The Bulletin  provides
        the  SEC  staff's  views  in  applying  generally  accepted   accounting
        principles to selected revenue recognition issues. This Bulletin,  which
        the Company will adopt for the fourth  quarter of 2000,  is not expected
        to have a material impact on the Company's  results of operations,  cash
        flows or financial position.

         D.  Stock Option Plan

          On April 27, 2000 the Company adopted the SCANA Corporation  Long-Term
          Equity Compensation Plan (the Plan). Under the Plan, certain employees
          and non-employee  directors may receive nonqualified stock options and
          other  forms of equity  compensation.  The Company  accounts  for this
          equity compensation under Accounting  Principles Board Opinion No. 25,
          "Accounting  for Stock Issued to Employees"  (APB 25). In addition the
          Company  has  adopted  the  disclosure-only  provisions  of SFAS  123,
          "Accounting for Stock-Based  Compensation."  As of September 30, 2000,
          160,508 options have been granted at strike prices equal to or greater
          than market price on the dates of issuance.

        E.  Earnings Per Share

        Earnings per share amounts have been  computed in  accordance  with SFAS
        No. 128,  "Earnings Per Share." Under SFAS No. 128,  basic  earnings per
        share are computed by dividing net income by the weighted average number
        of common shares outstanding for the period.  Diluted earnings per share
        are  computed as net income  divided by the weighted  average  number of
        shares of common stock outstanding during the period after giving effect
        to securities  considered  to be dilutive  potential  common stock.  The
        Company uses the treasury  stock method in  determining  total  dilutive
        potential common stock.

        F.  Reclassifications

        Certain  amounts from prior  periods have been  reclassified  to conform
with the 2000 presentation.

2.      Cumulative Effect of Accounting Change

        Effective  January 1, 2000 the Company  changed its method of accounting
        for  operating  revenues  from  cycle  billing  to  full  accrual.   The
        cumulative  effect of this change was $29 million,  net of tax. Accruing
        unbilled  revenues more closely matches revenues and expenses.  Unbilled
        revenues  represent the estimated  amount  customers will be charged for
        service received, but that has not yet been billed, as of the end of the
        accounting period.

        If this method had been  applied  retroactively,  net income  would have
        been $66 million  ($0.64 per share) and $149  million  ($1.44 per share)
        for the three and nine months ended  September  30, 1999,  respectively,
        compared to $67 million  ($0.65 per share) and $128  million  ($1.23 per
        share), respectively, as reported.

3.      ACQUISITION

        On February 10, 2000 the Company  completed  its  acquisition  of Public
        Service Company of North Carolina, Inc. (PSNC) in a business combination
        accounted  for as a purchase.  PSNC became a wholly owned  subsidiary of
        the Company. PSNC is a public utility engaged primarily in transporting,
        distributing   and  selling   natural  gas  to   approximately   360,000
        residential, commercial and industrial customers in 31 counties in North
        Carolina.   Pursuant  to  the  Agreement   and  Plan  of  Merger,   PSNC
        shareholders were paid approximately $212 million in cash and 17,413,013
        shares of SCANA  common  stock.  The results of  operations  of PSNC are
        included in the accompanying financial statements as of January 1, 2000,
        the effective  date of  acquisition . The total cost of the  acquisition
        was approximately $700 million, which exceeded the fair value of the net
        assets by approximately $467 million. The excess is being amortized over
        35 years on a straight line basis.


<PAGE>



        Operating  revenues  and net income of the  separate  companies  and the
        combined  proforma amounts including the cumulative effect of accounting
        change (See Note 2), as if the  acquisition  and the  accounting  change
        occurred on January 1, 1999, are as follows:
<TABLE>

        ---------------------------------------------------------------------------------------------------------
                                                                       For the Nine Months Ended
                                                                          September 30, 1999
        (Millions of Dollars, Except Per Share Amounts)    SCANA       PSNC       Adjustments1     Combined
        ------------------------------------------------------------------------ ---------------- ------------
<S>                                                       <C>          <C>           <C>              <C>
        Operating revenues                                $1,539       $226             -           $1,765
        Income before cumulative effect                      128         21          $(33)             116
        Cumulative effect of accounting change                21          1             -                22
        Net income                                           149         22           (33)             138
        Earnings per share                                  1.44       1.04              -             1.32
        ============================================================= ============= ================ ============
             1 Adjustments  include  interest charges (net of income tax effect)
         on  additional  debt issued in  conjunction  with the  acquisition  and
         amortization of the acquisition adjustment.
</TABLE>

4.     RATE AND OTHER REGULATORY MATTERS

        On July 20, 2000 the PSC issued an order  approving  SCE&G's request for
        an out-of-period adjustment to increase the cost of gas component of its
        rates for  natural gas  service  from  54.334  cents per therm to 68.835
        cents per therm,  effective with the first billing cycle in August 2000.
        As part of its regularly  scheduled  annual review of gas costs, the PSC
        issued an order on November 9, 2000 which further  increased the cost of
        gas  component  to 78.151  cents  per  therm,  effective  with the first
        billing cycle in November 2000.

        On July 5, 2000 the PSC  approved  SCE&G's  request to  implement  lower
        depreciation rates for its gas operations.  The new rates were effective
        retroactively  to  January  1, 2000 and will  result in a  reduction  in
        annual depreciation expense of approximately $2.9 million.

        On December 30, 1999 PSNC filed an  application  with the North Carolina
        Utilities  Commission  (NCUC) to extend  natural gas service to Madison,
        Jackson  and  Swain  Counties.  Pursuant  to  state  statutes,  the NCUC
        required PSNC to forfeit its exclusive  franchises to serve six counties
        in western  North  Carolina  effective  January 31, 2000  because  these
        counties were not receiving  any natural gas service.  Madison,  Jackson
        and Swain  Counties were included in the forfeiture  order.  On June 29,
        2000  the  NCUC  approved  PSNC's  requests  for  reinstatement  of  its
        exclusive  franchises  for  Madison,  Jackson  and  Swain  Counties  and
        disbursement of up to $28.4 million from PSNC's  expansion fund for this
        project.   PSNC  estimates  that  the  cost  of  this  project  will  be
        approximately $31.4 million.

         On December 7, 1999 the NCUC issued an order  approving the acquisition
        of PSNC by the Company. As specified in the NCUC order, PSNC reduced its
        rates by  approximately  $1 million in August  2000,  will reduce  rates
        another  $1  million  in  August  2001  and has  agreed  to a  five-year
        moratorium  on general  rate cases.  General rate relief can be obtained
        during this period to recover costs  associated with materially  adverse
        governmental  actions and force majeure events. On December 30, 1999 the
        Carolina Utility Customers  Association,  Inc. (CUCA) filed an appeal of
        this order with the North  Carolina  Court of Appeals.  On June 15, 2000
        CUCA withdrew its appeal.

        On September 14, 1999 the PSC approved an accelerated  capital  recovery
        plan for South Carolina Electric & Gas Company's (SCE&G) Cope Generating
        Station.  The plan  was  implemented  beginning  January  1,  2000 for a
        three-year  period.  The PSC approved an  accelerated  capital  recovery
        methodology  wherein  SCE&G  may  increase   depreciation  of  its  Cope
        Generating  Station in excess of amounts  that would be  recorded  based
        upon  currently   approved   depreciation   rates.  The  amount  of  the
        accelerated  depreciation will be determined by SCE&G based on the level
        of revenues and operating  expenses,  not to exceed $36 million annually
        without the approval of the PSC.  Any unused  portion of the $36 million
        in any  given  year  may be  carried  forward  for  possible  use in the
        subsequent  year. As of September 30, 2000 no  accelerated  depreciation
        has  been  recorded.  The  accelerated  capital  recovery  plan  will be
        accomplished through existing customer rates.

         On October  30, 1998 the NCUC  issued an order in PSNC's  general  rate
        case filed in April 1998. The order, effective November 1, 1998, granted
        PSNC  additional  revenue of $12.4  million and  allowed a 9.82  percent
        overall  rate of  return  on  PSNC's  net  utility  investment.  It also
        approved the  continuation of the Weather  Normalization  Adjustment and
        Rider D Mechanisms and full margin  transportation rates. PSNC's Rider D
        rate  mechanism  authorizes  the recovery of all prudently  incurred gas
        costs from customers on a monthly basis.  Any difference in amounts paid
        and  collected for these costs is deferred for  subsequent  refund to or
        collection from customers. On February 4, 2000, in response to an appeal
        by CUCA, the Supreme Court of North Carolina affirmed the NCUC order.

         On  November  6, 1997 the NCUC issued an order  permitting  PSNC,  on a
        trial basis, to establish its commodity cost of gas for large commercial
        and industrial  customers on the basis of market prices for natural gas.
        This  procedure  allows PSNC to manage its  deferred gas costs better by
        ensuring  that the amount paid for natural gas to serve these  customers
        approximates  the  amount  collected  from  them.   PSNC's  request  for
        permanent  approval  of this  mechanism  was  approved by the NCUC in an
        order issued April 6, 2000.

        In September 1992 the PSC issued an order granting SCE&G's request for a
        $.25  increase  in transit  fares from $.50 to $.75 in  Columbia,  South
        Carolina;  however,  the PSC also  required  $.40  fares for low  income
        customers and denied SCE&G's  request to reduce the number of routes and
        frequency  of service.  The new rates were placed into effect in October
        1992. SCE&G appealed the PSC's order to the Circuit Court,  which in May
        1995  ordered  the case back to the PSC for  reconsideration  of several
        issues including the low income rider program,  routing changes, and the
        $.75 fare. The Supreme Court declined to review an appeal of the Circuit
        Court  decision and  dismissed the case.  The PSC and other  intervenors
        filed  another  Petition for  Reconsideration,  which the Supreme  Court
        denied.  The PSC and  other  intervenors  filed  another  appeal  to the
        Circuit  Court which the Circuit  Court  denied in an order dated May 9,
        1996. In this order,  the Circuit  Court upheld its previous  orders and
        remanded  them  to the  PSC.  During  August  1996  the PSC  heard  oral
        arguments on the orders on remand from the Circuit  Court.  On September
        30,  1996 the PSC  issued an order  affirming  its  previous  orders and
        denied SCE&G's request for reconsideration.  In response to an appeal of
        the PSC's order by SCE&G,  the Circuit  Court issued an order on May 25,
        2000,  which  remanded  the  matter  to the PSC for  review  of  SCE&G's
        original application and request to terminate the low income rider fare.
        On  September  27,  2000 the PSC  issued an order  granting  the  relief
        requested by SCE&G. On September 29, 2000 the Consumer  Advocate filed a
        motion  with the PSC for a stay of this  order to  which  SCE&G  filed a
        response.  On October 3, 2000 the PSC accepted  the Consumer  Advocate's
        motion and issued a stay of its order.  Additional motions are currently
        pending before the PSC with regard to the order and the stay.

5.      LONG-TERM DEBT

       On February 8, 2000 SCANA issued $400 million of two-year  floating  rate
       notes maturing  February 8, 2002. The interest rate on the notes is reset
       quarterly based on a three-month LIBOR plus 50 basis points. The proceeds
       from  these  privately  sold  notes  were  used  to  consummate   SCANA's
       acquisition of PSNC. On February 10, 2000 SCANA borrowed $300 million for
       a three-year term under a credit agreement with several banks.
       The funds were also used to consummate SCANA's acquisition of PSNC.

       On June 14, 2000 SCE&G issued $150 million of First Mortgage Bonds having
       an annual  interest  rate of 7.50  percent and maturing on June 15, 2005.
       The  proceeds  from the sale of these bonds were used to pay the maturity
       of SCE&G's $100 million First Mortgage Bonds due June 15, 2000, to reduce
       short-term debt and for general corporate purposes.

       On July 13, 2000 the Company issued $300 million  two-year  floating rate
       notes  maturing on July 15, 2002.  The interest  rate is reset  quarterly
       based on a three-month LIBOR plus 65 basis points. Proceeds from the debt
       were used to repay  medium-term  notes  totaling $170 million,  to reduce
       short-term debt and for general corporate purposes.

       In July 2000 PSNC established a $125 million short-term  commercial paper
       program  to replace  the lines of credit it had with  various  banks.  At
       September 30, 2000 PSNC had issued all of its $125 million program.

6.      RETAINED EARNINGS

        The Restated  Articles of  Incorporation of the Company do not limit the
        dividends that may be payable on its common stock. However, the Restated
        Articles of  Incorporation  of SCE&G and the  Indenture  underlying  its
        First and  Refunding  Mortgage  Bonds  contain  provisions  that,  under
        certain circumstances,  could limit the payment of cash dividends on its
        common stock.

         In addition,  with respect to hydroelectric projects, the Federal Power
        Act  requires  the  appropriation  of  a  portion  of  certain  earnings
        therefrom. At September 30, 2000,  approximately $32 million of retained
        earnings  were  restricted  by this  requirement  as to  payment of cash
        dividends on SCE&G's common stock.

7.      INVESTMENTS IN EQUITY SECURITIES

        At September 30, 2000,  SCANA  Communications  Holdings,  Inc.  (SCH), a
        wholly  owned,   indirect   subsidiary  of  SCANA,  held  the  following
        investments in ITC Holding Company, Inc. (ITC) and its affiliates:

          o    Powertel,  Inc. (Powertel) is a publicly traded company that owns
               and operates  personal  communications  services (PCS) systems in
               several major  Southeastern  markets.  SCH owns approximately 4.9
               million  common  shares of  Powertel  at a cost of  approximately
               $76.5 million. Powertel common stock closed at $76.0625 per share
               on September 30, 2000,  resulting in a pre-tax unrealized holding
               gain of $298.6 million (a decline of $119.0 million from December
               31, 1999).  Accumulated other  comprehensive  income includes the
               after-tax  amount of all  unrealized  holding gains and losses on
               common  shares.  In addition,  SCH owns the  following  series of
               non-voting  convertible preferred shares, at the approximate cost
               noted:  100,000  shares series B ($75.1  million);  50,000 shares
               series D ($22.5 million);  and 50,000 shares 6.5 percent series E
               ($75.0  million).  Cumulative  dividends  on  preferred  series E
               shares are  generally  paid in common  shares of Powertel and are
               accrued  quarterly.  Preferred series B shares become convertible
               in March 2002 at a conversion price of $16.50 per common share or
               approximately  4.6  million  common  shares.  Preferred  series D
               shares become  convertible in March 2002 at a conversion price of
               $12.75 per  common  share or  approximately  1.7  million  common
               shares. Preferred series E shares become convertible in June 2003
               at a conversion price of $22.01 per common share or approximately
               3.4 million  common shares.  The market value of the  convertible
               preferred  shares  of  Powertel  is  not  readily   determinable.
               However, as converted,  the market value of the underlying common
               shares for the preferred shares was approximately  $739.2 million
               at September 30, 2000,  reflecting an unrecorded  pre-tax holding
               gain of $566.6 million (a decline of $236.1 million from December
               31, 1999).

              On August 28,  2000 SCH  announced  that under  terms of  separate
              definitive  agreements,  Powertel  has  agreed to be  acquired  by
              either   Deutsche   Telekom  AG  (DT)  or   VoiceStream   Wireless
              Corporation   (VoiceStream).    If   DT's   previously   announced
              acquisition  of  VoiceStream is  successfully  completed,  then DT
              would also acquire Powertel.  If the DT - VoiceStream  transaction
              is not completed,  then  VoiceStream  would acquire  Powertel.  In
              connection with these  transactions,  SCH entered into stockholder
              agreements with each of DT and  VoiceStream  pursuant to which SCH
              agreed to vote its  Powertel  shares in support of either of these
              transactions.  In addition,  SCH agreed to certain restrictions on
              disposition of its Powertel shares and the shares it would receive
              in either of these transactions.

     o    ITC^DeltaCom,   Inc.  (ITCD)  is  a  fiber  optic   telecommunications
          provider.  SCH owns approximately 5.1 million common shares of ITCD at
          a cost of  approximately  $43.0  million.  ITCD common stock closed at
          $11.50  per  share on  September  30,  2000,  resulting  in a  pre-tax
          unrealized  holding gain of $15.8  million (a decline of $82.5 million
          from  December  31,  1999).  Accumulated  other  comprehensive  income
          includes the  after-tax  amount of all  unrealized  holding  gains and
          losses on common shares.  In addition,  SCH owns  1,480,771  shares of
          series  A  preferred  stock of ITCD at a cost of  approximately  $11.2
          million.  Series A preferred  shares become  convertible in March 2002
          into 2,961,542 shares of ITCD common stock. The market value of series
          A preferred  stock of ITCD is not readily  determinable.  However,  as
          converted,  the market  value of the  underlying  common stock for the
          series A preferred stock was approximately  $34.1 million at September
          30,  2000,  reflecting  an  unrecorded  pre-tax  holding gain of $22.9
          million (a decline of $47.7 million from December 31, 1999).

     o    Knology  Inc.  (Knology),  previously  Knology  Holdings,  Inc.,  is a
          broad-band  service  provider  of  cable  television,   telephone  and
          internet  services.  SCH owns  71,050  units  of  Knology.  Each  unit
          consists of one 11.875% Senior  Discount Note due 2007 and one warrant
          entitling the holder to purchase  .003734 shares of preferred stock of
          Knology.  The cost of this investment was  approximately  $40 million.
          Prior to  February  24,  2000,  SCH owned  451,800  shares of series A
          preferred stock of Knology at a cost of approximately $1.1 million. On
          February 24, 2000 Knology Holdings, Inc. was spun off from ITC and was
          renamed  Knology,  Inc.  As a result of this spin  off,  SCH  received
          approximately  6.8 million shares of Knology series A preferred stock.
          The market value of these investments is not readily determinable.

          o    ITC   holds   ownership   interests   in   several   Southeastern
               communications  companies,  including those discussed  above. SCH
               owns  approximately  3.1 million common shares,  645,153 series A
               convertible  preferred  shares,  and 133,664 series B convertible
               preferred  shares of ITC. These  investments  cost  approximately
               $5.8  million,  $7.2  million,  and $4.0  million,  respectively.
               Preferred  series A shares become  convertible in March 2002 at a
               conversion price of $2.73 per common share or  approximately  3.2
               million   common  shares.   Preferred   series  B  shares  become
               convertible  in March  2002 at a  conversion  price of $8.86  per
               common share or  approximately  0.7 million  common  shares.  The
               market values of these investments are not readily determinable.

8.      CONTINGENCIES

        With respect to commitments at September 30, 2000,  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,
        1999. Contingencies at September 30, 2000 include the following:

        A.  Nuclear Insurance

        The  Price-Anderson   Indemnification   Act,  which  deals  with  public
        liability for a nuclear  incident,  currently  establishes the liability
        limit for third-party  claims  associated  with any nuclear  incident at
        $9.5 billion.  Each reactor licensee is currently liable for up to $88.1
        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.  SCE&G's  maximum
        assessment,  based on its  two-thirds  ownership of V. C. Summer Nuclear
        Station  (Summer  Station),  would be  approximately  $58.7  million per
        incident, but not more than $6.7 million per year.

        SCE&G  currently  maintains  policies  (for  itself and on behalf of the
        South Carolina Public Service Authority) with Nuclear Electric Insurance
        Limited  (NEIL).  These  policies  covering  the  nuclear  facility  for
        property  damage,   excess  property  damage  and  outage  costs  permit
        assessments under certain conditions to cover insurer's losses. Based on
        the current annual premium, SCE&G's portion of the retrospective premium
        assessment would not exceed $8.1 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  SCE&G's  rates would not recover
        the cost of any purchased  replacement power, SCE&G will retain the risk
        of loss as a  self-insurer.  SCE&G 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

        SCE&G  maintains  an  environmental  assessment  program to identify and
        assess   current  and  former   operations   sites  that  could  require
        environmental cleanup. As site assessments are initiated,  estimates are
        made of the  expenditures,  if any, deemed  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  and  amortized  with
        recovery  provided through rates.  SCE&G has also recovered  portions of
        its environmental liabilities through settlements with various insurance
        carriers,  including  all amounts  previously  deferred for its electric
        operations. SCE&G expects to recover all deferred amounts related to its
        gas  operations  by  December  2005.  Deferred  amounts,  net of amounts
        recovered through rates and insurance settlements, totaled $20.0 million
        at  September  30,  2000.  The deferral  includes  the  estimated  costs
        associated with the following matters.

          o    In  September  1992 the  Environmental  Protection  Agency  (EPA)
               notified SCE&G, 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  encompasses  approximately  30  acres  and
               includes   properties   which  were   locations  for   industrial
               operations,  including a wood preserving (creosote) plant, one of
               SCE&G's decommissioned  manufactured gas plants (MGP), properties
               owned by the National  Park  Service and the City of  Charleston,
               and  private  properties.  The site has not  been  placed  on the
               National  Priorities  List,  but may be added in the future.  The
               Potentially    Responsible    Parties   (PRPs)    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 approved a
               Remedial  Investigation Report in February 1997 and a Feasibility
               Study Report in June 1998. In July 1998 the EPA approved  SCE&G's
               Removal  Action Work Plan for soil  excavation.  SCE&G  completed
               Phase  One  of  the   Removal   Action  in  1998  at  a  cost  of
               approximately  $1.5 million.  Phase Two, which cost approximately
               $3.5 million,  included  excavation and  installation  of several
               permanent barriers to mitigate coal tar seepage. On September 30,
               1998 a Record of Decision  was issued  which sets forth the EPA's
               view  of  the  extent  of  each  PRP's  responsibility  for  site
               contamination and the level to which the site must be remediated.
               SCE&G  estimates that the Record of Decision will result in costs
               of approximately $13.3 million, of which approximately $2 million
               remains.  On  January  13,  1999  the  EPA  issued  a  Unilateral
               Administrative  Order for  Remedial  Design and  Remedial  Action
               directing SCE&G to design and carry out a plan of remediation for
               the Calhoun Park site.  The Order is  temporarily  stayed pending
               further  negotiations  between SCE&G and the EPA. However,  SCE&G
               submitted  a  Comprehensive  Remedial  Design Work Plan (RDWP) on
               December  17,  1999 and  proceeded  with  implementation  pending
               agency  approval.  The RDWP was approved by the EPA in July 2000,
               and its implementation continues.

                In October  1996 the City of  Charleston  and SCE&G  settled all
                environmental  claims  the  City  may  have  had  against  SCE&G
                involving  the  Calhoun  Park area for a payment of $26  million
                over  four  years  (1996-1999)  by SCE&G to the  City.  SCE&G is
                recovering  the  amount  of  the  settlement,   which  does  not
                encompass site  assessment  and cleanup costs,  through rates in
                the same manner as other  amounts  accrued for site  assessments
                and  cleanup.  As part of the  environmental  settlement,  SCE&G
                constructed  an 1,100 space  parking  garage on the Calhoun Park
                site  (construction was completed in April 2000) and transferred
                the  facility  to the  City in  exchange  for a  $16.9  million,
                20-year  municipal bond  collateralized  by revenues from, and a
                mortgage on, the parking garage.

          o    SCE&G owns three other  decommissioned  MGP sites  which  contain
               residues of by-product chemicals. For the site located in Sumter,
               South Carolina,  effective September 15, 1998, SCE&G entered into
               a  Remedial   Action  Plan  Contract  with  the  South   Carolina
               Department of Health and Environmental Control (DHEC) pursuant to
               which it  agreed  to  undertake  a full  site  investigation  and
               remediation  under the oversight of DHEC. Site  investigation and
               characterization  are  proceeding  according  to  schedule.  Upon
               selection and successful  implementation  of a site remedy,  DHEC
               will give SCE&G a Certificate of Completion and a covenant not to
               sue. SCE&G is continuing to investigate the other two sites,  and
               is monitoring the nature and extent of residual contamination.

       In addition,  PSNC owns, or has owned,  all or portions of seven sites in
       North   Carolina  on  which  MGPs  were  formerly   operated.   Intrusive
       investigation  (including  drilling,  sampling and analysis) has begun at
       only  one  site  and  the  remaining  sites  have  been  evaluated  using
       historical  records and  observations of current site  conditions.  These
       evaluations  have revealed that MGP residuals are present or suspected at
       several of the sites.  The North Carolina  Department of Environment  and
       Natural  Resources has  recommended  that no further action be taken with
       respect to one site. In March and April 1994, an environmental consulting
       firm retained by PSNC estimated that the aggregate cost of  investigating
       and  monitoring   the  extent  of   environmental   degradation   and  of
       implementing  remedial procedures with respect to the remaining sites may
       range  from  $3.7  million  to  $50.1  million  over  a  30-year  period.
       Subsequently,  an environmental due diligence review of PSNC conducted in
       February 1999  estimated that the cost to remediate the sites would range
       between $11.3  million and $21.9  million.  During the second  quarter of
       2000, the review was finalized and the estimated  liability was recorded.
       PSNC is unable to determine  the rate at which costs may be incurred over
       this time period.  The  estimated  cost range has not been  discounted to
       present value. PSNC's associated actual costs for these sites will depend
       on a number of  factors,  such as  actual  site  conditions,  third-party
       claims and recoveries from other PRPs. An order of the NCUC dated May 11,
       1993  authorized  deferral  accounting for all costs  associated with the
       investigation and remediation of MGP sites. Recovery of carrying costs on
       deferred  amounts is not  allowed.  As of September  30,  2000,  PSNC has
       recorded a liability and  associated  regulatory  asset of $10.2 million,
       which  reflects the minimum  amount of the range net of estimated  shared
       cost recovery from other PRPs.

       Amounts incurred to date are not material.  Management intends to request
       recovery of additional  MGP clean-up  costs not recovered from other PRPs
       in future rate case filings, and believes that all costs incurred will be
       recoverable in gas rates.

9.  SEGMENT OF BUSINESS INFORMATION

The Company's reportable segments are listed in the following table. The Company
uses operating income to measure  profitability for its Electric  Operations and
Gas  Distribution  segments.  Therefore,  net income is not  allocated  to these
segments.  The Company uses net income to measure  profitability  for its Energy
Marketing  segment,  which  includes  the  Company's  unregulated  gas  sales in
Georgia.  Affiliate  revenue is derived  from  transactions  between  reportable
segments  as well as  transactions  between  separate  legal  entities  that are
combined into the same reportable segment.

<TABLE>
                                        Disclosure of Reportable Segments
                                               (Millions of Dollars)
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------
      Three months ended         Electric       Gas           Gas         Energy      All     Adjustments/    Consolidated
      September 30, 2000        Operations  Distribution  Transmission  Marketing    Other    Eliminations       Total
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

<S>                               <C>           <C>           <C>          <C>                                   <C>
External  Revenue                 $ 397         $ 97          $ 62         $260        -            -            $ 816
Intersegment Revenue                 152             1           41         -          -         $(194)            -
Operating Income (Loss)              164           (11)           6          (12)      -              (1)           146
Net Income (Loss)                    n/a           n/a            3           (8)    $ (12)           76             59
Segment Assets                    4,873        1,544          258           163      1,125         (835)         7,128
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------
      Three months ended         Electric       Gas           Gas         Energy      All     Adjustments/    Consolidated
      September 30, 1999        Operations  Distribution  Transmission  Marketing    Other    Eliminations       Total
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

External Revenue                  $ 393         $ 34          $ 53         $78         -            -            $ 558
Intersegment Revenue                  90            4            28         -          -         $(122)            -
Operating Income (Loss)              157          (4)             6        (22)      $ (1)            (1)           135
Net Income (Loss)                    n/a          n/a             3        (14)          2           76              67
Segment Assets                     4,732         394           234           86       l,069         (830)         5,685
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------
      Nine months ended          Electric       Gas           Gas         Energy      All     Adjustments/    Consolidated
      September 30, 2000        Operations  Distribution  Transmission  Marketing    Other    Eliminations1      Total
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

External  Revenue                 $1,011       $ 459          $176         $654        -            -            $2,300
Intersegment Revenue                 368             2          142            2       -         $(514)            -
Operating Income (Loss)              357           42            22           (1)      -              (3)           417
Net Income (Loss)                    n/a          n/a           11           (3)    $ (37)         220             191
Segment Assets                     4,873        1,544          258           163      1,125         (835)         7,128
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------


------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------
      Nine months ended          Electric       Gas           Gas         Energy      All     Adjustments/    Consolidated
      September 30, 1999        Operations  Distribution  Transmission  Marketing    Other    Eliminations       Total
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------

External Revenue                  $ 953         $163          $136         $287        -            -            $1,539
Intersegment Revenue                 237            4          107          -          -         $(348)            -
Operating Income (Loss)              323          16             18          (60)      -             (5)            292
Net Income (Loss)                    n/a         n/a              8          (40)      -            160              128
Segment Assets                     4,732         394           234             86     $1,069        (830)          5,685
------------------------------- ----------- ------------- ------------- ----------- --------- -------------- ---------------
1 Includes cumulative effect of accounting change
</TABLE>

<PAGE>



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

                                SCANA CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        The following discussion should be read in conjunction with Management's
Discussion  and  Analysis  of  Financial  Condition  and  Results of  Operations
appearing in SCANA  Corporation's  (the Company)  Annual Report on Form 10-K for
the year ended December 31, 1999.

        Statements  included in this  discussion  and analysis (or  elsewhere in
this quarterly  report) which are not statements of historical fact are intended
to be, and are hereby identified as,  "forward-looking  statements" for purposes
of the safe harbor  provided by Section 27A of the  Securities  Act of 1933,  as
amended,  and Section 21E of the  Securities  Exchange Act of 1934,  as amended.
Readers  are  cautioned  that  any  such  forward-looking   statements  are  not
guarantees   of  future   performance   and   involve  a  number  of  risks  and
uncertainties,  and that  actual  results  could  differ  materially  from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements  include,  but are not  limited  to,  the  following:  (1)  that  the
information  is of a  preliminary  nature and may be  subject to further  and/or
continuing  review  and  adjustment,  (2)  changes  in  the  utility  regulatory
environment, (3) changes in the economy in areas served by SCANA's subsidiaries,
(4) the impact of competition from other energy suppliers, (5) the management of
the Company's operations, (6) variations in prices of natural gas and fuels used
for electric  generation,  (7) growth  opportunities for the Company's regulated
and  non-regulated  subsidiaries,  (8) the  results of  financing  efforts,  (9)
changes in the Company's accounting  policies,  (10) weather conditions in areas
served   by   the   Company's   subsidiaries   ,   (11)   performance   of   the
telecommunications   companies  in  which  the  Company  has  made   significant
investments,   (12)  inflation,   (13)  exposure  to  environmental  issues  and
liabilities,  (14) changes in environmental regulations and (15) the other risks
and uncertainties  described from time to time in the Company's periodic reports
filed with the Securities  and Exchange  Commission.  The Company  disclaims any
obligation to update any forward-looking statements.

                    COMPETITION AND SIGNIFICANT DEVELOPMENTS
                             SINCE DECEMBER 31, 1999


North Carolina Gas Market

        On February 10, 2000 the Company  completed  its  acquisition  of Public
Service  Company  of North  Carolina,  Inc.  (PSNC) in a  transaction  valued at
approximately  $900 million,  including the assumption of debt. The  transaction
has been  accounted  for as a  purchase.  PSNC is  operated  as a  wholly  owned
subsidiary of the Company. As a result of the transaction,  the Company became a
registered  public  utility  holding  company under the Public  Utility  Holding
Company Act of 1935 (PUHCA).

Georgia Retail Gas Market

        Energy  Marketing's  Georgia retail gas operations  maintained a base of
customers ranging from approximately 431,000 at January 1, 2000 to approximately
423,000 at September 30, 2000. This compares to the corresponding period in 1999
when  the  customer  base  grew  from  approximately  78,000  at  January  1  to
approximately  421,000  at  September  30.  In  addition,   Georgia  retail  gas
operations reported net income of approximately $1.6 million for the nine months
ended September 30, 2000,  compared to a net loss of approximately $36.1 million
for the corresponding  period in 1999. This increase in net income resulted from
lowering  costs and  improving  efficiency  by  transitioning  from  start-up to
ongoing  operations and from an improved margin on natural gas sales. Due to the
seasonality  of the retail  gas  business  in  Georgia,  management  anticipates
incurring losses for the fourth quarter, and breaking even for the year.


<PAGE>


Regional Transmission Organization

         On February 9, 2000 the Federal  Energy  Regulatory  Commission  (FERC)
issued FERC Order 2000.  The Order  required  utilities  which operate  electric
transmission  systems to submit plans for the  possible  formation of a regional
transmission  organization  (RTO). On October 16, 2000 the Company and two other
southeastern  electric  utilities  filed a joint  request with FERC to establish
GridSouth Transco, LLC (GridSouth). When operational, GridSouth will function as
an independent regional  transmission  company.  Initially,  the three utilities
will continue to own their  respective  transmission  networks,  while GridSouth
will provide  planning and  operational  oversight of the electric  transmission
grid. .

Power Plant and Gas Transmission Line Construction

         On November 10, 2000 SCANA and Fayetteville Public Works (PWC) signed a
memorandum  of  understanding  to  participate  in the  joint  construction  and
ownership of a 500-megawatt  combined cycle natural gas turbine power plant.  It
is anticipated that the plant will provide  electricity to  Fayetteville,  North
Carolina  beginning  in the  summer  of 2004,  and will cost an  estimated  $265
million. PWC will own 60% of the plant with SCANA owning the remaining interest.
SCANA  will  also  build a  106-mile  natural  gas  transmission  line  from the
Company's  pipeline system in South Carolina to  Fayetteville.  The transmission
line is projected to cost approximately $90 million and will be owned by SCANA.

LIQUIDITY AND CAPITAL RESOURCES

         On October 7, 2000 the 1,000 megawatt V. C. Summer Nuclear  Station was
removed from service for a planned maintenance and refueling outage scheduled to
last  38  1/2  days.  During  initial  inspection  activities,  plant  personnel
discovered  a small leak  coming  from a  hairline  crack in a weld in a reactor
coolant system pipe. SCE&G has performed extensive ultrasonic testing of similar
welds in the cooling  system,  which  confirmed  that the problem was limited to
this single  weld.  SCE&G will repair the crack prior to  restarting  the plant.
While no specific  duration has yet been  established for the repair,  the plant
should be back in operation by late December. Although SCE&G cannot estimate how
much this repair will add to the cost of the outage, any costs above the amounts
normally  accrued for this  refueling  are expected to be deferred and amortized
over the plant's next 18-month operating cycle. The cost of replacement power is
expected to be recovered through SCE&G's electric fuel adjustment clause.

     On July 20, 2000 the PSC issued an order  approving  SCE&G's request for an
out-of-period  adjustment to increase the cost of gas component of its rates for
natural  gas  service  from  54.334  cents per therm to 68.835  cents per therm,
effective  with the first billing cycle in August 2000. As part of its regularly
scheduled  annual  review of gas costs,  on October 17, 2000 the PSC approved an
increase in the cost of gas component to 78.151 cents per therm,  effective with
the first billing cycle in November 2000.

        On July 5, 2000 the PSC  approved  SCE&G's  request to  implement  lower
depreciation  rates  for  its  gas  operations.  The new  rates  were  effective
retroactively  to  January  1,  2000 and will  result in a  reduction  in annual
depreciation expense of approximately $2.9 million.

        On September 14, 1999 the PSC approved an accelerated  capital  recovery
plan for SCE&G's Cope Generating  Station.  The plan was implemented  January 1,
2000 for a three-year period.  The PSC approved an accelerated  capital recovery
methodology  wherein  SCE&G may  increase  depreciation  of its Cope  Generating
Station  in excess of  amounts  that  would be  recorded  based  upon  currently
approved depreciation rates. The amount of the accelerated  depreciation will be
determined by SCE&G based on the level of revenues and operating  expenses,  not
to exceed $36  million  annually  without the  approval  of the PSC.  Any unused
portion of the $36 million in any given year may be carried forward for possible
use in the succeeding year. As of September 30, 2000 no accelerated depreciation
has been recorded.  The accelerated  capital  recovery plan will be accomplished
through existing customer rates.


<PAGE>



        On August 7, 1996 the City of Charleston  executed  30-year electric and
gas franchise agreements with SCE&G. In consideration for the electric franchise
agreement,  SCE&G is paying the City $25 million over seven years (1996  through
2002) and has donated to the City the existing transit assets in Charleston. The
$25 million is included in electric plant-in-service and is being amortized over
the 30 year franchise period. In settlement of environmental claims the City may
have had against  SCE&G  involving  the Calhoun  Park area,  where SCE&G and its
predecessor  companies operated a manufactured gas plant until the 1960's, SCE&G
paid the City $26 million over a four-year  period (1996 through 1999).  As part
of the environmental settlement, SCE&G constructed an 1,100 space parking garage
on the  Calhoun  Park  site  (construction  was  completed  in April  2000)  and
transferred  the facility to the City in exchange for a $16.9  million,  20-year
municipal bond  collateralized  by revenues from, and a mortgage on, the parking
garage.

        The following table summarizes how the Company  generated and used funds
for property  additions  and  construction  expenditures  during the nine months
ended September 30, 2000 and 1999:


--------------------------------------------------------------------------------
                                                          Nine Months Ended
                                                            September 30,
(Millions of Dollars)                                   2000               1999
-------------------------------------------------------------------- -----------


Net cash provided from operating activities            $ 325              $170
Net cash provided from financing activities              632                48
Cash provided from sale of subsidiary assets               1                17
Cash and temporary cash investments available
  at the beginning of the period                         116                62
==================================================================== ===========
Net cash available for  property additions
    and construction                                  $1,074              $297
expenditures
==================================================================== ===========

Funds used for purchase of subsidiary                  $ 693                -
Funds used for utility property additions and
     construction expenditures,
     net of noncash allowance for funds
     used during construction                          $ 204              $167
==================================================================== ===========

Funds used for nonutility property additions            $ 35               $ 73
==================================================================== ===========


       On February 8, 2000 SCANA issued $400 million of two-year  floating  rate
notes  maturing  February  8,  2002.  The  interest  rate on the  notes is reset
quarterly based on a three-month  LIBOR plus 50 basis points.  The proceeds from
these privately sold notes were used to consummate SCANA's  acquisition of PSNC.
On February 10, 2000 SCANA  borrowed $300 million for a three-year  term under a
credit  agreement  with several  banks.  The funds were also used to  consummate
SCANA's acquisition of PSNC.

       On June 14, 2000 SCE&G issued $150 million of First Mortgage Bonds having
an annual  interest  rate of 7.50  percent and  maturing on June 15,  2005.  The
proceeds  from the sale of these bonds were used to pay the  maturity of SCE&G's
$100 million First Mortgage Bonds due June 15, 2000, to reduce  short-term  debt
and for general corporate purposes.

       On July 13, 2000 the Company issued $300 million  two-year  floating rate
notes maturing on July 15, 2002. The interest rate is reset quarterly based on a
three-month  LIBOR  plus 65 basis  points.  Proceeds  from the debt were used to
repay medium-term notes totaling $170 million, to reduce short-term debt and for
general corporate purposes.

       In July 2000 PSNC established a $125 million short-term  commercial paper
program to replace the lines of credit it had with various  banks.  At September
30, 2000 PSNC had issued all of its $125 million program.

        Pursuant to rules of the Securities and Exchange Commission, as a result
of PSNC's  acquisition by SCANA,  PSNC's  registration  statement (as amended on
June 7, 1999)  covering up to an aggregate  of $150 million of senior  unsecured
debt  securities is no longer  effective.  On September 6, 2000 PSNC filed a new
registration  statement  with the SEC,  the  effectiveness  of which is expected
prior to year end.

        The Company anticipates that the remainder of its 2000 cash requirements
will be met through  internally  generated  funds and the issuance of additional
short-term  debt.  The timing and amount of such  financings  will  depend  upon
market  conditions  and other  factors.  The Company  expects that it has or can
obtain adequate sources of financing to meet its projected cash requirements for
the next 12  months  and for the  foreseeable  future.  The  Company's  ratio of
earnings to fixed charges for the 12 months ended September 30, 2000 was 2.92.

Environmental Matters

         In July  2000  the  Environmental  Protection  Agency  (EPA)  requested
information on the Company's  repair and  maintenance  of its coal-fired  plants
since  1978.  This is part of the  EPA's New  Source  Review  (NSR)  enforcement
initiative,  in which the EPA claims that  utilities  and others have  committed
widespread violations of the Clean Air Act permitting  requirements for the past
quarter century. In November 1999 the EPA filed suit against seven utilities and
issued an administrative  order to Tennessee Valley Authority  alleging numerous
NSR permitting  violations.  The EPA's  allegations  run counter to previous EPA
guidance  regarding the  applicability of the NSR permitting  requirements.  The
Company,  along with several other utilities,  has routinely undertaken the type
of repair,  replacement  and  maintenance  projects  that the EPA now claims are
illegal. A suit has not been instituted against the Company, and while it is too
early to predict any potential EPA action,  the Company believes that all of its
electric  generation  units  are  properly  permitted  and  have  been  properly
maintained. Because this matter is in its most preliminary stage with respect to
the Company,  management  cannot estimate the effects of these matters on future
consolidated results of operations, cash flows or financial position.

         In  October  1998,  the EPA  issued a final  ruling on  regional  ozone
control that requires revised State  Implementation  Plans (SIPs) for 22 eastern
states and the District of Columbia.  This EPA ruling was challenged in court by
various  states,  industry  and other  interests,  including  the state of South
Carolina.  In March  2000,  the court  upheld  most  aspects of the EPA's  rule.
Petitioners  asked the court to rehear the case and overturn the March decision,
but in June the court declined to rehear the case and lifted its earlier stay of
the states' obligation to revise their SIPs. Industry and State petitioners have
not decided at this time what additional review they may seek.

         The EPA has undertaken  other  ozone-related  actions having  virtually
identical  goals to its October 1998 action.  These  actions have  likewise been
challenged in court by the same or similar parties.  The final resolution of the
October 1998 action is expected to resolve these other ozone-related  actions as
well. The South Carolina  Department of Health and Environmental  Control (DHEC)
is considering  methods by which to reduce utility  emissions of nitrogen oxide.
The date for a final state rulemaking is uncertain,  but will be likely in 2001.
SCE&G will undertake  additional nitrogen oxide control projects during 2000 and
2001,  at a cost of  approximately  $100  million as an interim  step to address
possible contributions to ozone formation in South Carolina. As of September 30,
2000 SCE&G has  incurred  costs of $0.3  million in relation to these  projects.
Depending  on the  resolution  of these  matters,  costs to SCE&G may reach $190
million to meet the full requirements of the 1998 Ozone ruling. Expenditures for
these projects will be capitalized, and are expected to be completed by 2004.

         For  additional  information  on  environmental  matters  see  Note  8B
"Contingencies -  Environmental"  of NOTES TO CONDENSED  CONSOLIDATED  FINANCIAL
STATEMENTS appearing in this Quarterly Report on Form 10-Q.

Investments in Equity Securities

     SCANA  Communications  Holdings,  Inc.  (SCH),  a  wholly  owned,  indirect
subsidiary of SCANA,  holds investments in Powertel,  Inc.  (Powertel) and other
telecommunications  companies  (described  in  Note  6  "Investments  in  Equity
Securities" of Notes to Condensed Consolidated Financial Statements appearing in
this Quarterly Report on Form 10-Q). On August 28, 2000 SCH announced that under
terms of separate definitive  agreements,  Powertel has agreed to be acquired by
either   Deutsche   Telekom  AG  (DT)  or   VoiceStream   Wireless   Corporation
(VoiceStream).  If DT's  previously  announced  acquisition  of  VoiceStream  is
successfully   completed,   then  DT  would  also  acquire   Powertel.   If  the
DT-VoiceStream  transaction is not  completed,  then  VoiceStream  would acquire
Powertel.  In connection with these  transactions,  SCH entered into stockholder
agreements with each of DT and VoiceStream  pursuant to which SCH agreed to vote
its  Powertel  shares in support of either of these  transactions  and agreed to
certain  restrictions  on its ability to dispose of its Powertel  shares and the
shares that it would receive in either of these transactions.  (See SCANA's Form
8-K dated August 26, 2000 and its Amendment 4 to Schedule 13D filed with respect
to Powertel on September 22, 2000).


<PAGE>



                              RESULTS OF OPERATIONS
             FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
                AS COMPARED TO THE CORRESPONDING PERIODS IN 1999

Earnings and Dividends

        Earnings  per share of common  stock for the three and nine months ended
September 30, 2000 and 1999 were as follows:

-------------------------------------------------------------------------------
                                        Three Months Ended   Nine Months Ended
                                        2000         1999   2000          1999
------------------------------------------------------------------------------

arnings derived from:
   Operations                           $.56     $.65     $1.55     $1.23
   Change in accounting                    -        -        .28        -
==============================================================================
   Earnings per weighted average share  $.56     $.65     $1.83     $1.23
==============================================================================

        Earnings per share from  operations for the three months ended September
30, 2000  decreased,  and earnings for the nine months ended  increased,  due to
improved  results from the  Company's  entry into the Georgia  retail gas market
(improved $.08 and $.36,  respectively)  and its  acquisition of PSNC (decreased
$.07 and increased  $.12,  respectively).  Results for these periods are further
explained below.

        Earnings per share from  operations for the three months ended September
30, 2000  decreased $.09 as compared to 1999. The earnings for the third quarter
1999  include a  non-recurring  $.05  gain  from the sale of  towers  owned by a
telecommunications  subsidiary.  Apart  from this gain,  earnings  for the third
quarter 2000 decreased $.04. The Company  experienced  improved electric and gas
margins ($.01 and $.22, respectively).  These improvements were more than offset
by increased operations and maintenance expense ($.07),  interest expense ($.13)
and depreciation expense ($.07).

        Earnings per share from  operations for the nine months ended  September
30, 2000 increased $.32 as compared to 1999. After considering the effect of the
non-recurring  $.05  gain in  1999  discussed  above,  earnings  for the  period
increased  $.37. This was primarily  attributable  to improved  electric and gas
margins ($.26 and $1.03, respectively). These increases were partially offset by
increased operations and maintenance  expenses ($.28),  interest expense ($.37),
depreciation expense ($.21) and property taxes ($.05).

     For the last several  years,  the market value of the Company's  retirement
plan assets have exceeded the total actuarial  present value of accumulated plan
benefits.  As such, pension income for the three and nine months ended September
30, 2000 was $13.2 million and $31.9 million, compared to $9.9 million and $22.8
million,  respectively,  for the  corresponding  periods in 1999. As a result of
pension income,  employee benefit costs were reduced  approximately $7.5 million
and $17.6 million for the three and nine months ended  September  30, 2000.  For
the  corresponding   periods  in  1999,  employee  benefit  costs  were  reduced
approximately $5.3 million and $12.5 million, respectively.  Additionally, other
income  increased  $3.9  million and $9.9  million for the three and nine months
ended September 30, 2000. For the  corresponding  periods in 1999,  other income
increased $3.1 million and $6.8 million, respectively.

        Earnings  from a change in  accounting  resulted  from the  recording of
unbilled revenues by SCANA's retail utility subsidiaries (See Note 2 of NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS).

        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 2% and 1% of
income before income taxes, respectively,  and approximately 2% and 3% of income
before income taxes, respectively, for the three and nine months ended September
30, 2000 and 1999.


<PAGE>



        The  Company's  Board of  Directors  declared  the  following  quarterly
dividends on common stock:

---------------------------------------- --------------------- ----------------
Declaration           Dividend           Record                Payment
Date                  Per Share          Date                  Date
---------------------------------------- --------------------- ----------------
February 22, 2000      $.2875            March 10, 2000        April 1, 2000
April 27, 2000         $.2875            June 9, 2000          July 1, 2000
August 16, 2000        $.2875            September 8, 2000     October 1, 2000
October 17, 2000       $.2875            December 8, 2000      January 1, 2001
---------------------------------------- --------------------- ----------------

Electric Operations

        Changes in the electric operations sales margins (including transactions
with  affiliates and excluding  unbilled  revenue) for the three and nine months
ended  September 30, 2000, when compared to the  corresponding  periods in 1999,
were as follows:
<TABLE>
<CAPTION>

--------------------------------- ------------------------------------------ -------------------------------------------
                                  Three Months Ended                         Nine Months Ended
(Dollars in Millions)               2000       1999           Change            2000       1999           Change
--------------------------------- ---------- --------- --------------------- ----------- --------- ---------------------

<S>                               <C>        <C>       <C>                     <C>       <C>         <C>         <C>
Electric operating revenue        $365.0     $393.2    $(28.2)                 $979.1    $952.3      $26.8       2.8%
                                                                   (7.2%)
Less:  Fuel used in generation        84.6       87.4                (3.2%)     227.5      220.8        6.7       3.0%
                                                        (2.8)
           Purchased power            19.0       14.3      4.7      32.9%         36.4       28.6       7.8     27.3%
--------------------------------- ---------- --------- ---------             ----------- --------- -----------
Margin                            $261.4     $291.5    $(30.1)     (10.3%)     $715.2    $702.9       $12.3      1.7%
--------------------------------- ========== ========= ========= ----------- =========== ========= =========== =========
</TABLE>

        Changes in  electric  operations  sales  margins  for the three and nine
months ended  September 30, 2000 reflect  milder weather in the third quarter of
2000 which was partially offset by customer growth  throughout the year and more
favorable weather in the first and second quarters of 2000.

Gas Distribution

        Changes in the gas distribution  sales margins  (including  transactions
with  affiliates and excluding  unbilled  revenue) for the three and nine months
ended  September 30, 2000, when compared to the  corresponding  periods in 1999,
were as follows:
<TABLE>

------------------------------------ ----------------------------------------- ------------------------------------------
                                     Three Months Ended                        Nine Months Ended
(Dollars in Millions)                 2000      1999            Change         2000        1999            Change
------------------------------------ -------- ---------- --------------------- --------- --------- ----------------------

Gas distribution operating
<S>                                  <C>      <C>          <C>       <C>       <C>       <C>         <C>        <C>
   revenue                           $94.7    $37.8        $56.9     150.5%    $456.6    $168.2      $288.4     171.5%
 Less: Gas purchased for resale        64.6     26.7        37.9     141.9%      283.6     104.8      178.8     170.6%
------------------------------------ -------- ---------- ----------            --------- --------- -----------
Margin                               $30.1    $11.1        $19.0     171.2%    $173.0    $  63.4     $109.6     172.9%
------------------------------------ ======== ========== ========== ---------- ========= ========= =========== ==========
</TABLE>

        Gas  distribution  sales  margins  for the three and nine  months  ended
September 30, 2000  increased  primarily as a result of the  acquisition of PSNC
(which   contributed   $21.3   million   and  $113.0   million  to  the  change,
respectively).  Other  factors  were  milder  weather  in the  second  and third
quarters of 2000, which was partially offset by customer growth.

Gas Transmission

        Changes in the gas transmission  sales margins  (including  transactions
with  affiliates)  for the three and nine months ended  September 30, 2000, when
compared to the corresponding periods in 1999, were as follows:
<TABLE>

------------------------------------ ---------------------------------------- ------------------------------------------
                                     Three Months Ended                       Nine Months Ended
(Dollars in Millions)                 2000      1999            Change        2000         1999            Change
------------------------------------ -------- ---------- -------------------- ---------- ---------- --------------------

Gas transmission operating
<S>                                  <C>      <C>          <C>       <C>      <C>        <C>          <C>       <C>
   revenue                           $102.9   $81.3        $21.6     26.6%    $318.6     $241.9       $76.7     31.7%
 Less: Gas purchased for resale                 68.9        20.6     29.9%      276.1      206.3       69.8     33.8%
                                     89.5
------------------------------------ -------- ---------- ----------           ---------- ---------- ----------
Margin                               $  13.4  $12.4        $  1.0     8.1%    $  42.5    $  35.6      $  6.9    19.4%
------------------------------------ ======== ========== ========== --------- ========== ========== ========== =========
</TABLE>

        Gas  transmission  sales  margins  for the three and nine  months  ended
     September 30, 2000 increased  primarily as a result of improved  industrial
margins due to an improved competitive position relative to alternate fuels.

Energy Marketing

     Changes in the energy marketing sales margins for the three and nine months
ended  September 30, 2000, when compared to the  corresponding  periods in 1999,
were as follows:
<TABLE>

---------------------------------- ------------------------------------------- ------------------------------------------
                                   Three Months Ended                          Nine Months Ended
(Dollars in Millions)                2000      1999             Change         2000        1999            Change
---------------------------------- --------- ---------- ---------------------- --------- ---------- ---------------------

<S>                                <C>         <C>        <C>        <C>       <C>       <C>         <C>       <C>
Gas and electric sales revenue     $259.9      $78.1      $181.8     232.8%    $653.9    $287.6      $366.3    127.4%
 Less: Gas and electricity
    purchased for resale             251.9      84.1       167.8     199.5%      606.0     292.8       313.2   107.0%
---------------------------------- --------- ---------- -----------            --------- ---------- ----------
Margin                             $    8.0    $ (6.0)    $  14.0       *      $  47.9   $   (5.2)    $ 53.1       *
---------------------------------- ========= ========== =========== ---------- ========= ========== ========== ==========
*Percentage not meaningful
</TABLE>

        Energy  marketing  sales  margins  for the three and nine  months  ended
September 30, 2000  increased  primarily as a result of improved  margins in the
Georgia retail natural gas market. See LIQUIDITY AND CAPITAL RESOURCES.

Other Operating Expenses

        Changes in other operating  expenses for the three and nine months ended
September 30, 2000, when compared to the corresponding  periods in 1999, were as
follows:
<TABLE>

------------------------------------- ---------------------------------------- ----------------------------------------
                                      Three Months Ended                       Nine Months Ended
(Dollars in Millions)                  2000      1999            Change          2000       1999           Change
------------------------------------- -------- ---------- -------------------- ---------- ---------- ------------------

<S>                                   <C>       <C>         <C>       <C>       <C>        <C>        <C>      <C>
Other operation and maintenance       $118.2    $105.1      $13.1     12.5%     $346.8     $298.9     $47.9    16.0%
Depreciation and amortization                      42.5      11.3     26.6%       161.5      126.5     35.0    27.7%
                                       53.8
Other taxes                                        26.4        3.1    11.7%         87.6      78.8       8.8   11.2%
                                       29.5
------------------------------------- -------- ---------- ----------           ---------- ---------- --------
Total                                 $201.5    $174.0      $27.5     15.8%     $595.9     $504.2     $91.7    18.2%
------------------------------------- ======== ========== ========== --------- ========== ========== ======== =========
</TABLE>

        Other  operating  expenses for the three and nine months ended September
30, 2000 increased from 1999 levels  primarily as a result of the acquisition of
PSNC. This acquisition  accounted for the following  increases:  Other operation
and maintenance ($17.0 million and $51.9 million), Depreciation and amortization
($10.5  million  and $31.3  million),  and Other  taxes  ($1.6  million and $5.0
million).

        Apart from the PSNC acquisition, changes in other operating expenses for
the three months ended September 30, 2000 compared to the  corresponding  period
for 1999 were as follows:  Other  operation and maintenance  expenses  decreased
$3.9  million.  This decrease was  primarily  attributable  to a net decrease in
employee  benefit costs ($3.5 million,  including the effect of pension income),
decreased  expenses related to storm damage ($2.8 million) and early retirements
in 1999 ($3.2  million).  These  decreases  were  partially  offset by increased
expenses related to the Company's Energy Marketing  segment ($4.1 million),  and
employee bonus accruals ($3.9 million).  Depreciation and amortization increased
$0.8 million due to normal property  additions,  which was partially offset by a
reduction  in  SCE&G's  gas  depreciation   rates  (See  LIQUIDITY  AND  CAPITAL
RESOURCES). Other taxes increased $1.5 million due to increased property taxes.

        Apart from the PSNC acquisition, changes in other operating expenses for
the nine months ended  September 30, 2000 compared to the  corresponding  period
for 1999 were as follows:  Other  operation and maintenance  expenses  decreased
$4.0  million.  This decrease was  primarily  attributable  to a net decrease in
employee  benefit costs ($8.1 million,  including the effect of pension income),
decreased expenses related to storm damage ($1.5 million),  early retirements in
1999 ($3.2  million),  and decreased  expenses  related to the Company's  Energy
Marketing  segment ($6.2  million).  These  decreases were  partially  offset by
employee bonus accruals ($9.3 million) and expenses associated with Cogen South,
LLC operations  ($5.9 million).  Depreciation  and  amortization  increased $3.7
million  due to  normal  property  additions,  which was  partially  offset by a
reduction  in  SCE&G's  gas  depreciation   rates  (See  LIQUIDITY  AND  CAPTIAL
RESOURCES). Other taxes increased $3.8 million due to increased property taxes.


<PAGE>


Interest Expense

        Interest expense, excluding the debt component of AFC, for the three and
nine months ended September 30, 2000 increased  approximately  $22.6 million and
$62.0 million, respectively, when compared to the corresponding periods in 1999.
Approximately  $5.0  million  and $14.7  million was  attributable  to PSNC debt
assumed by the Company as a result of the  acquisition.  The remaining  increase
was  primarily  due to the  issuance  of debt in the  first  quarter  of 2000 to
complete  the  acquisition  of  PSNC,  and  to  increased  interests  rates  and
borrowings for general corporate purposes.

Income Taxes

        Income  taxes for the three and nine  months  ended  September  30, 2000
decreased  approximately $5.8 million and increased approximately $28.6 million,
respectively, when compared to the corresponding periods in 1999.
These changes are primarily due to the changes in operating income.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

     All financial  instruments held by the Company and described below are held
for purposes other than trading.

     Interest  rate  risk - The  table  below  provides  information  about  the
Company's financial instruments that are sensitive to changes in interest rates.
For debt  obligations,  the table  presents  principal  cash  flows and  related
weighted average interest rates by expected maturity dates.

<TABLE>
                                                               September 30, 2000
                                                             Expected Maturity Date
                                        -------- ------- -------------------------------- ---------- ----------------------
                                                              (Dollars in Millions)
                                                                                           There-                  Fair
Liabilities                              2000     2001     2002       2003       2004       after      Total      Value
                                        -------- ------- ---------- ---------- ---------- ---------- ---------- -----------

Long-Term Debt:
<S>        <C>                           <C>      <C>      <C>        <C>        <C>       <C>        <C>        <C>
Fixed Rate ($)                           11.9     38.3     337.3      297.1      186.3     1,426.0    2,296.9    2,010.7
Average Fixed Interest Rate (%)          9.01     7.31       7.36      6.38       7.58         7.37       7.26
Variable Rate ($)                          -       -       550.0      150.0        -          -         700.0       700.0
Average Variable Interest Rate (%)         -       -         7.29       7.49       -          -           7.33
</TABLE>

     While a decrease in interest  rates would  increase the fair value of debt,
it is unlikely that events which would result in a realized loss will occur.

     In  addition,  the Company has  invested  in a  telecommunications  company
approximately  $40 million for 11.875% senior  discount notes due 2007. The fair
value of these notes  approximates  their carrying  value. An increase in market
interest  rates  would  result in a decrease  in fair value of these notes and a
corresponding adjustment, net of tax, to other comprehensive income.


<PAGE>



     Commodity  price  risk - The table  below  provides  information  about the
Company's  financial  instruments  that are  sensitive to changes in natural gas
prices. Weighted average settlement/strike prices are per 10,000 mmbtu.
<TABLE>

As of September 30, 2000                      Expected Maturity in 2000                   Expected Maturity in
2001                   Expected Maturity in 2002
                             Weighted                         Weighted                         Weighted
                             Average                          Average                          Average
                             Settlement    Contract   Fair    Settlement    Contract  Fair     Settlement       Contract   Fair
                             Price         Amount     Value   Price         Amount    Value    Price            Amount     Value
---------------------------- ------------- ---------- ------- ------------- --------- -------- ---------------- ---------- -------
Natural Gas Derivatives:
                                  (Millions of Dollars)            (Millions of Dollars)       (Millions of Dollars)

Futures Contracts:
<S>                              <C>         <C>      <C>         <C>          <C>      <C>         <C>           <C>       <C>
Long                             $5.2        $23.8    $27.1       $4.9         $5.3     $6.3        $4.4          $0.1      $0.1
Short                             5.3          2.3      4.4        5.1          0.1      0.1          -             -        -
SET Futures Contracts (1):
None
---------------------------- ------------- ---------- ------- -------------- ---------- ------ ---------------- ---------- -------
(1)      SCANA Energy Trading, LLC (SET) is a 70% owned subsidiary of  SCANA Energy Marketing, Inc.

</TABLE>

     Equity price risk - Investments in telecommunications companies' marketable
equity  securities  are carried at their  market  value of $696  million.  A ten
percent  decline in market  value would result in a $69.6  million  reduction in
fair value and a  corresponding  adjustment,  net of tax effect,  to the related
equity account for unrealized  gains/losses,  a component of other comprehensive
income.




<PAGE>






















                                           SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                                     FINANCIAL SECTION





















<TABLE>
<CAPTION>


<PAGE>


Item 1.  Financial Statements

                      SOUTH CAROLINA ELECTRIC & GAS COMPANY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

--------------------------------------------------------------------------------

September 30,           December 31,
                                                            2000         1999
--------------------------------------------------------------------------------
Assets                                                    (Millions of Dollars)
Utility Plant:
<S>                                                       <C>          <C>
    Electric                                              $4,377       $4,337
    Gas                                                      397          392
    Other                                                    181          191
--------------------------------------------------------------------------------
        Total                                              4,955        4,920
    Less accumulated depreciation and amortization         1,698        1,611
--------------------------------------------------------------------------------
        Total                                              3,257        3,309
    Construction work in progress                            242          149
    Nuclear fuel, net of accumulated amortization             54           43
--------------------------------------------------------------------------------
        Utility Plant, Net                                 3,553         3,501
--------------------------------------------------------------------------------

Nonutility Property and Investments, net of accumulated
    depreciation                                              26            19
--------------------------------------------------------------------------------

Current Assets:
    Cash and temporary cash investments                        54           78
    Receivables (including unbilled revenues)                 234          192
    Receivables - affiliated companies                          3            3
    Inventories (at average cost):
        Fuel                                                   22           30
        Materials and supplies                                 46           48
    Prepayments                                                10            8
    Deferred income taxes                                      11           16
--------------------------------------------------------------------------------
        Total Current Assets                                  380          375
--------------------------------------------------------------------------------

Deferred Debits:
    Emission allowances                                        26           31
    Environmental                                              21           24
    Nuclear plant decommissioning fund                         70           64
    Pension asset, net                                        186          144
    Other regulatory assets                                   150          164
    Other                                                     104           82
--------------------------------------------------------------------------------
        Total Deferred Debits                                 557          509
--------------------------------------------------------------------------------
            Total                                         $4,516        $4,404
================================================================================


</TABLE>







<TABLE>



<PAGE>




                                             SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                             CONDENSED CONSOLIDATED BALANCE SHEETS
                                                          (Unaudited)


----------------------------------------------------------------------------------------------- -------------------
                                                                               eptember 30,        December 31,
                                                                                  2000                 1999
----------------------------------------------------------------------------------------------- -------------------
Capitalization and Liabilities                                                      (Millions of Dollars)
Stockholders' Investment:
<S>                                                                              <C>                   <C>
    Common equity                                                                $1,650                $1,558
    Preferred stock (not subject to purchase or sinking funds)                      106                   106
----------------------------------------------------------------------------------------------- -------------------
        Total Stockholders' Investment                                             1,756                1,664
Preferred Stock, net (subject to purchase or sinking funds)                           11                   11
SCE&G-Obligated Mandatorily Redeemable Preferred Securities of SCE&G's
Subsidiary Trust, SCE&G Trust I, holding solely $50 million principal amount
    of the 7.55%
    Junior Subordinated Debentures of SCE&G, due 2027                                 50                    50
Long-Term Debt, net                                                                1,268                 1,121
----------------------------------------------------------------------------------------------- -------------------
          Total Capitalization                                                     3,085                 2,846
----------------------------------------------------------------------------------------------- -------------------

Current Liabilities:
    Short-term borrowings                                                            105                   213
    Current portion of long-term debt                                                 28                   128
    Accounts payable                                                                  73                    78
    Accounts payable - affiliated companies                                           27                    33
    Customer deposits                                                                 17                    17
    Taxes accrued                                                                     86                    60
    Interest accrued                                                                  26                    22
    Dividends declared                                                                46                    28
    Other                                                                              7                    10
----------------------------------------------------------------------------------------------- -------------------
          Total Current Liabilities                                                  415                   589
----------------------------------------------------------------------------------------------- -------------------

Deferred Credits:
    Deferred income taxes                                                            570                   560
    Deferred investment tax credits                                                  106                   108
    Reserve for nuclear plant decommissioning                                         70                    64
    Postretirement benefits                                                          112                    98
    Regulatory liabilities                                                            65                    59
    Other                                                                             93                    80
----------------------------------------------------------------------------------------------- -------------------
          Total Deferred Credits                                                   1,016                   969
----------------------------------------------------------------------------------------------- -------------------
                Total                                                             $4,516                $4,404
=============================================================================================== ===================

See Notes to Condensed Consolidated Financial Statements.



</TABLE>













<PAGE>


<TABLE>
                                       SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                                                    (Unaudited)

-------------------------------------------------------------------- ------------------------ ---------------------------
                                                                       Three Months Ended         Nine Months Ended
                                                                          September 30,             September 30,
                                                                       2000         1999          2000          1999
-------------------------------------------------------------------- ---------- ------------- ------------- -------------
                                                                       (Millions of Dollars, Except Per Share Amounts)

Operating Revenues:
<S>                                                                    <C>          <C>          <C>           <C>
    Electric                                                           $397         $393         $1,011        $ 953
    Gas                                                                  51           38            203          168
-------------------------------------------------------------------- ---------- ------------- ------------- -------------
        Total Operating Revenues                                        448         431           1,214        1,121
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Operating Expenses:
    Fuel used in electric generation                                      68          69           180          168
    Purchased power (including affiliated purchases)                      45           41           112          107
    Gas purchased from affiliate  for resale                              40           27           140          105
    Other operation  and maintenance                                      75           83           229          228
    Depreciation and amortization                                         40          39           119          115
    Other taxes                                                           25         24             75            71
-------------------------------------------------------------------- ---------- ------------- ------------- -------------
        Total Operating Expenses                                         293         283            855          794
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Operating Income                                                         155        148             359          327
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Other Income, including allowance for equity funds
     used during construction                                              3          2              11            7
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Income Before Interest Charges, Income Taxes,
    Preferred  Stock Dividends and Cumulative Effect of
    Accounting Change                                                    158        150            370           334
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Interest Charges:
    Interest expense on long-term debt                                    26          24             75            72
    Other interest expense, net of allowance for borrowed
       funds used during construction                                      -           1              4             4
-------------------------------------------------------------------- ---------- ------------- ------------- -------------
        Total Interest Charges, Net                                       26          25             79            76
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Income Before Income Taxes, Preferred Stock Dividends
   and Cumulative Effect of Accounting Change                            132        125            291            258
Income Taxes                                                              49          47           107             94
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Income Before Preferred Stock Dividend
 and Cumulative Effect of Accounting Change                               83          78            184          164
Preferred Dividend Requirement of SCE&G - Obligated
    Mandatorily Redeemable Preferred Securities                            1          1               3            3
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Income Before Cumulative Effect of Accounting Change                      82          77           181           161
Cumulative Effect of Accounting Change, net of taxes  (Note 2)             -           -             22            -
-------------------------------------------------------------------- ---------- ------------- ------------- -------------

Net Income                                                                82          77           203            161
Preferred Stock Cash Dividends (At stated rates)                          (2)         (2)           (6)           (6)
-------------------------------------------------------------------- ---------- ------------- ------------- -------------
Earnings Available for Common Stockholder                                 80           75          197           155
Retained Earnings at Beginning of Period                                 603         500           550           491
Common Stock Cash Dividends Declared                                     (41)        (25)        (105)           (96)
==================================================================== ========== ============= ============= =============
Retained Earnings at End of Period                                      $642         $550          $642          $550
==================================================================== ========== ============= ============= =============

See Notes to Condensed Consolidated Financial Statements.


<PAGE>

</TABLE>

<TABLE>
                                       SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     (Unaudited)

-------------------------------------------------------------------------------------------- ----------------------------
                                                                                                  Nine Months Ended
                                                                                                    September 30,
                                                                                                 2000           1999
-------------------------------------------------------------------------------------------- -------------- -------------

(Millions of Dollars)
Cash Flows From Operating Activities:
<S>                                                                                              <C>            <C>
   Net income                                                                                    $203           $161
      Adjustments to reconcile net income to net cash provided from operating activities:
          Cumulative effect of accounting change                                                   (22)          -
          Depreciation and amortization                                                            120           115
          Amortization of nuclear fuel                                                              15            13
          Deferred income taxes, net                                                                15              8
          Pension asset                                                                             (42)         (21)
          Post retirement benefits                                                                  14             8
          Other regulatory assets                                                                   12             9
          Other regulatory liabilities                                                                6            5
          Allowance for funds used during construction                                               (2)          (5)
          Over (under) collections, fuel adjustment clauses                                           2           (8)
          Changes in certain current assets and liabilities:
              (Increase) decrease in receivables                                                     (6)        (17)
              (Increase) decrease in inventories                                                     10            5
              Increase (decrease) in accounts payable                                               (11)        (39)
              Increase (decrease) in taxes accrued                                                   12          28
          Other, net                                                                                 (9)        (39)
-------------------------------------------------------------------------------------------- -------------- -------------
       Net Cash Provided From Operating Activities                                                  317         223
-------------------------------------------------------------------------------------------- -------------- -------------

Cash Flows From Investing Activities:
       Utility property additions and construction expenditures, net of AFC                        (178)       (161)
        Other property and investments                                                                (7)         (2)
-------------------------------------------------------------------------------------------- -------------- -------------
       Net Cash Used For Investing Activities                                                      (185)       (163)
-------------------------------------------------------------------------------------------- -------------- -------------

Cash Flows From Financing Activities:
     Proceeds:
         Issuance of First Mortgage Bonds                                                          148           99
     Repayments:
          First Mortgage Bonds                                                                    (100)           -
          Other long-term debt                                                                       (3)          (9)
     Dividend payments:
         Common stock                                                                               (87)       (108)
         Preferred stock                                                                             (6)          (6)
     Short-term borrowings, net                                                                   (108)          (45)
     Fuel and emission allowance financings, net                                                   -              11
-------------------------------------------------------------------------------------------- -------------- -------------
     Net Cash Provided From (Used For) Financing Activities                                        (156)         (58)
-------------------------------------------------------------------------------------------- -------------- -------------

Net Decrease In Cash And Temporary Cash Investments                                                 (24)           2
Cash And Temporary Cash Investments At January 1                                                     78           36
============================================================================================ ============== =============
Cash And Temporary Cash Investments At September 30                                              $ 54           $   38
============================================================================================ ============== =============

Supplemental Cash Flow Information:
    Cash paid for - Interest (net of capitalized interest of $3 for 2000 and 1999)               $ 72           $   70
                           - Income taxes                                                           65            47

See Notes to Condensed Consolidated Financial Statements.

</TABLE>


<PAGE>


                      SOUTH CAROLINA ELECTRIC & GAS COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000
                                   (Unaudited)

         The  following  notes should be read in  conjunction  with the Notes to
Condensed Consolidated Financial Statements appearing in South Carolina Electric
& Gas  Company's  (the  Company)  Annual  Report on Form 10-K for the year ended
December  31,  1999.  These are  interim  financial  statements,  and due to the
seasonality  of the Company's  business,  the amounts  reported in the Condensed
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 except as
described  in Notes 2 and 3, 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). This accounting standard requires
       cost-based  rate-regulated  utilities  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, 2000,  approximately  $172 million and $65
       million of regulatory  assets and  liabilities,  respectively,  including
       amounts  recorded  for  deferred  income tax assets  and  liabilities  of
       approximately  $121 million and $47 million,  respectively.  The electric
       and gas  regulatory  assets  (excluding  deferred  income tax  assets) of
       approximately  $25  million  and $25  million,  respectively,  are  being
       recovered  through  rates,  and the Public  Service  Commission  of South
       Carolina  (PSC) has approved  accelerated  recovery of  approximately  $2
       million of the electric  regulatory 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
       could 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 that a write-off  would be required,
       but it is not  expected  that cash flows or financial  position  would be
       materially affected.

           B. Recently Issued Accounting Standard and Bulletin

       In June 1998 the  Financial  Accounting  Standards  Board  (FASB)  issued
       Statement of Financial  Accounting  Standards (SFAS) No. 133, "Accounting
       for Derivative Instruments and Hedging Activities." In June 2000 the FASB
       issued SFAS No.  138,  which  amends  certain  provisions  of SFAS 133 to
       expand the normal purchase and sale exemption for supply contracts and to
       redefine interest rate risk to reduce sources of  ineffectiveness,  among
       other things.  The Company has appointed a team to implement SFAS 133, as
       amended.  This team has been educating  both financial and  non-financial
       personnel,  inventorying  contracts and addressing various other SFAS 133
       related issues.  The Company will adopt SFAS 133, as amended,  on January
       1, 2001. The Company is determining the impact of adoption of SFAS 133 on
       its consolidated  results of operations and financial position.  Adoption
       of this statement should have no impact on consolidated cash flows.

       In December  1999 the  Securities  and Exchange  Commission  (SEC) issued
       Staff  Accounting  Bulletin No. 101,  "Revenue  Recognition  in Financial
       Statements."  In June  2000 the SEC  amended  the  Bulletin  to delay the
       implementation  date  until no later than the  fourth  fiscal  quarter of
       fiscal years beginning after December 15, 1999. The Bulletin provides the
       SEC staff's views in applying generally accepted accounting principles to
       selected revenue  recognition  issues.  This Bulletin,  which the Company
       will adopt for the  fourth  quarter of 2000,  is not  expected  to have a
       material  impact on the Company's  results of  operations,  cash flows or
       financial position.

       C.  Reclassifications

       Certain amounts from prior periods have been reclassified to conform with
the 2000 presentation.


<PAGE>



2.   Cumulative Effect of Accounting Change

        Effective  January 1, 2000 the Company  changed its method of accounting
        for  operating  revenues  from  cycle  billing  to  full  accrual.   The
        cumulative  effect of this change was $22 million,  net of tax. Accruing
        unbilled  revenues more closely matches revenues and expenses.  Unbilled
        revenues  represent the estimated  amount  customers will be charged for
        service received, but that has not yet been billed, as of the end of the
        accounting   period.   Previously  these  revenues  were  recognized  as
        operating revenues as customers were billed.

        If this method had been  applied  retroactively,  net income  would have
        been $76  million and $182  million for the three and nine months  ended
        September  30,  1999,  respectively,  compared  to $77  million and $161
        million as reported.

3.   RATE AND OTHER REGULATORY MATTERS

     On July 20, 2000 the PSC issued an order  approving  SCE&G's request for an
out-of-period adjustment to increase the cost of gas components of its rates for
natural  gas  service  from  54.334  cents per therm to 68.835  cents per therm,
effective  with the first billing cycle in August 2000. As part of its regularly
scheduled  annual  review of gas costs,  the PSC issued an order on  November 9,
2000 which  further  increased  the cost of gas  component  to 78.151  cents per
therm, effective with the first billing cycle in November 2000.

        On July 5, 2000 the PSC  approved  SCE&G's  request to  implement  lower
        depreciation rates for its gas operations.  The new rates were effective
        retroactively  to  January  1, 2000 and will  result in a  reduction  in
        annual depreciation expense of approximately $2.9 million.

        On September 14, 1999 the PSC approved an accelerated  capital  recovery
        plan for the Company's Cope Generating Station. The plan was implemented
        beginning January 1, 2000 for a three-year  period.  The PSC approved an
        accelerated  capital  recovery   methodology  wherein  the  Company  may
        increase  depreciation  of its Cope  Generating  Station  in  excess  of
        amounts   that  would  be  recorded   based  upon   currently   approved
        depreciation  rates. The amount of the accelerated  depreciation will be
        determined  by the Company  based on the level of revenues and operating
        expenses, not to exceed $36 million annually without the approval of the
        PSC.  Any  unused  portion  of the $36  million in any given year may be
        carried forward for possible use in the subsequent year. As of September
        30, 2000 no accelerated  depreciation has been recorded. The accelerated
        capital  recovery plan will be accomplished  through  existing  customer
        rates.

        In September 1992 the PSC issued an order granting the Company's request
        for a $.25  increase  in transit  fares  from $.50 to $.75 in  Columbia,
        South Carolina; however, the PSC also required $.40 fares for low income
        customers  and  denied  the  Company's  request  to reduce the number of
        routes and  frequency of service.  The new rates were placed into effect
        in October  1992.  The Company  appealed  the PSC's order to the Circuit
        Court,  which  in  May  1995  ordered  the  case  back  to the  PSC  for
        reconsideration  of  several  issues  including  the  low  income  rider
        program,  routing changes, and the $.75 fare. The Supreme Court declined
        to review an appeal of the Circuit  Court  decision  and  dismissed  the
        case.  The  PSC  and  other   intervenors  filed  another  Petition  for
        Reconsideration,  which  the  Supreme  Court  denied.  The PSC and other
        intervenors  filed another appeal to the Circuit Court which the Circuit
        Court denied in an order dated May 9, 1996.  In this order,  the Circuit
        Court upheld its previous  orders and remanded  them to the PSC.  During
        August  1996 the PSC heard oral  arguments  on the orders on remand from
        the  Circuit  Court.  On  September  30,  1996 the PSC  issued  an order
        affirming  its  previous  orders and denied the  Company's  request  for
        reconsideration.  In  response  to an appeal  of the PSC's  order by the
        Company,  the  Circuit  Court  issued  an order on May 25,  2000,  which
        remanded  the  matter to the PSC for  review of the  Company's  original
        application  and request to  terminate  the low income  rider  fare.  On
        September 27, 2000 the PSC issued an order granting the relief requested
        by the Company.  On September  29, 2000 the  Consumer  Advocate  filed a
        motion  with the PSC for a stay of this  order to  which  SCE&G  filed a
        response.  On October 3, 2000 the PSC accepted  the Consumer  Advocate's
        motion and issued a stay of its order.  Additional motions are currently
        pending before the PSC with regard to the order and the stay.


<PAGE>


4.     LONG-TERM DEBT

       On June 14, 2000 SCE&G issued $150 million of First Mortgage Bonds having
       an annual  interest  rate of 7.50  percent and maturing on June 15, 2005.
       The  proceeds  from the sale of these bonds were used to pay the maturity
       of SCE&G's $100 million First Mortgage Bonds due June 15, 2000, to reduce
       short-term debt and for general corporate purposes.

5.     RETAINED EARNINGS

       The Restated  Articles of  Incorporation of the Company and the Indenture
       underlying  its First and Refunding  Mortgage  Bonds  contain  provisions
       that,  under  certain  circumstances,  could  limit the  payment  of cash
       dividends on its common stock.

       In addition,  with respect to hydroelectric  projects,  the Federal Power
       Act  requires  the   appropriation  of  a  portion  of  certain  earnings
       therefrom.  At September 30, 2000,  approximately $32 million of retained
       earnings  were  restricted  by this  requirement  as to  payment  of cash
       dividends on common stock.

6.   CONTINGENCIES

       With respect to commitments  at September 30, 2000,  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,
       1999. Contingencies at September 30, 2000 include the following:

       A. Nuclear Insurance

       The Price-Anderson Indemnification Act, which deals with public liability
       for a nuclear  incident,  currently  establishes  the liability limit for
       third-party  claims associated with any nuclear incident at $9.5 billion.
       Each  reactor  licensee is currently  liable for up to $88.1  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 the V. C. Summer  Nuclear  Station
       (Summer Station),  would be approximately $58.7 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 Nuclear  Electric
        Insurance  Limited (NEIL).  These policies covering the nuclear facility
        for  property  damage,  excess  property  damage and outage costs permit
        assessment under certain conditions to cover insurer's losses.  Based on
        the current annual premium,  the Company's  portion of the retrospective
        premium assessment would not exceed $8.1 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  maintains an environmental  assessment  program to identify
        and assess  current  and  former  operations  sites  that could  require
        environmental cleanup. As site assessments are initiated,  estimates are
        made of the  expenditures,  if any, deemed  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  and  amortized  with
        recovery provided through rates. The Company has also recovered portions
        of  its  environmental  liabilities  through  settlements  with  various
        insurance  carriers,  including all amounts previously  deferred for its
        electric operations. The Company expects to recover all deferred amounts
        related to its gas operations by December 2005. Deferred amounts, net of
        amounts recovered through rates and insurance settlements, totaled $20.0
        million at September 30, 2000. The deferral includes the estimated costs
        associated with the following matters.

     o 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 encompasses approximately 30 acres
and  includes  properties  which  were  locations  for  industrial   operations,
including  a  wood   preserving   (creosote)   plant,   one  of  the   Company's
decommissioned  manufactured gas plants (MGP),  properties owned by the National
Park Service and the City of Charleston,  and private  properties.  The site has
not been placed on the National Priorities List, but may be added in the future.
The Potentially Responsible Parties (PRPs) 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
approved a Remedial  Investigation  Report in  February  1997 and a  Feasibility
Study Report in June 1998. In July 1998 the EPA approved the  Company's  Removal
Action Work Plan for soil  excavation.  The Company  completed  Phase One of the
Removal Action in 1998 at a cost of approximately $1.5 million. Phase Two, which
cost approximately $3.5 million, included excavation and installation of several
permanent barriers to mitigate coal tar seepage.  On September 30, 1998 a Record
of  Decision  was  issued  which sets forth the EPA's view of the extent of each
PRP's responsibility for site contamination and the level to which the site must
be remediated.  The Company estimates that the Record of Decision will result in
costs of approximately  $13.3 million, of which approximately $2 million remains
to be incurred.  On January 13, 1999 the EPA issued a Unilateral  Administrative
Order for Remedial  Design and Remedial  Action  directing the Company to design
and carry out a plan of  remediation  for the  Calhoun  Park site.  The Order is
temporarily stayed pending further negotiations between the Company and the EPA.
However, the Company submitted a Comprehensive  Remedial Design Work Plan (RDWP)
on December 17, 1999 and proceeded with implementation  pending agency approval.
The RDWP was approved by the EPA in July 2000, and its implementation continues.

     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, through rates in the
same manner as other amounts accrued for site  assessments and cleanup.  As part
of the environmental settlement,  the Company constructed an 1,100 space parking
garage on the Calhoun Park site  (construction  was completed in April 2000) and
transferred  the facility to the City in exchange for a $16.9  million,  20-year
municipal bond  collateralized  by revenues from, and a mortgage on, the parking
garage.

          o The Company owns three other  decommissioned MGP sites which contain
     residues of  by-product  chemicals.  For the site located in Sumter,  South
     Carolina, effective September 15, 1998, the Company entered into a Remedial
     Action  Plan  Contract  with the South  Carolina  Department  of Health and
     Environmental  Control  (DHEC)  pursuant to which it agreed to  undertake a
     full site  investigation  and remediation under the oversight of DHEC. Site
     investigation and  characterization  are proceeding  according to schedule.
     Upon selection and successful  implementation  of a site remedy,  DHEC will
     give the Company a Certificate of Completion and a covenant not to sue. The
     Company is continuing to investigate the other two sites, and is monitoring
     the nature and extent of residual contamination.



<PAGE>


7.  SEGMENT OF BUSINESS INFORMATION

The Company's reportable segments are listed in the following table. The Company
uses operating income to measure  profitability for its Electric  Operations and
Gas  Distribution  segments.  Therefore,  net income is not  allocated  to these
segments.  Affiliate  revenue is derived from  transactions  between  reportable
segments  as well as  transactions  between  separate  legal  entities  that are
combined into the same reportable segment.  Assets for the period did not change
significantly.
<TABLE>

                        Disclosure of Reportable Segments
                              (Millions of Dollars)

--------------------------------------- ------------ ------------ ---------- ----------------- --------------
          Three months ended             Electric        Gas         All       Adjustments/    Consolidated
          September 30, 2000            Operations   Distribution   Other      Eliminations        Total
--------------------------------------- ------------ ------------ ---------- ----------------- --------------

<S>                                        <C>           <C>                                       <C>
External  Revenue                          $397          $51          -             -              $448
Intersegment Revenue                          63          -           -           $(63)              -
Operating Income (Loss)                     160           (4)         -              (1)             155
--------------------------------------- ------------ ------------ ---------- ----------------- --------------


--------------------------------------- ------------ ------------ ---------- ----------------- --------------
          Three months ended             Electric        Gas         All       Adjustments/    Consolidated
          September 30, 1999            Operations   Distribution   Other      Eliminations        Total
--------------------------------------- ------------ ------------ ---------- ----------------- --------------

External Revenue                           $393          $38          -             -              $431
Intersegment Revenue                          63          -           -           $(63)              -
Operating Income (Loss)                      153          (4)         -               (1)            148
--------------------------------------- ------------ ------------ ---------- ----------------- --------------


--------------------------------------- ------------ ------------ ---------- ----------------- --------------
          Nine months ended              Electric        Gas         All       Adjustments/    Consolidated
          September 30, 2000            Operations   Distribution   Other      Eliminations        Total
--------------------------------------- ------------ ------------ ---------- ----------------- --------------

External  Revenue                         $1,011        $203          -             -             $1,214
Intersegment Revenue                          169         -           -           $(169)             -
Operating Income                              345          17         -               (3)             359
--------------------------------------- ------------ ------------ ---------- ----------------- --------------


--------------------------------------- ------------ ------------ ---------- ----------------- --------------
          Nine months ended              Electric        Gas         All       Adjustments/    Consolidated
          September 30, 1999            Operations   Distribution   Other      Eliminations        Total
--------------------------------------- ------------ ------------ ---------- ----------------- --------------

External Revenue                           $953         $168          -             -             $1,121
Intersegment Revenue                         159          -           -           $(159)             -
Operating Income                             314           17         -               (4)             327
--------------------------------------- ------------ ------------ ---------- ----------------- --------------
</TABLE>

<PAGE>


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


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

        The following discussion should be read in conjunction with Management's
Discussion  and  Analysis  of  Financial  Condition  and  Results of  Operations
appearing in South  Carolina  Electric & Gas Company's  (SCE&G) Annual Report on
Form 10-K for the year ended December 31, 1999.

        Statements  included in this  discussion  and analysis (or  elsewhere in
this quarterly  report) which are not statements of historical fact are intended
to be, and are hereby  identified as, "forward looking  statements" for purposes
of the safe harbor  provided by Section 27A of the  Securities  Act of 1933,  as
amended,  and Section 21E of the  Securities  Exchange Act of 1934,  as amended.
Readers  are  cautioned  that  any  such  forward-looking   statements  are  not
guarantees   of  future   performance   and   involve  a  number  of  risks  and
uncertainties,  and that  actual  results  could  differ  materially  from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements  include,  but are not  limited  to,  the  following:  (1)  that  the
information  is of a  preliminary  nature and may be  subject to further  and/or
continuing  review  and  adjustment,  (2)  changes  in  the  utility  regulatory
environment,  (3) changes in the economy in SCE&G's service  territory,  (4) the
impact of competition from other energy suppliers, (5) the management of SCE&G's
operations,  (6) variations in prices of natural gas and fuels used for electric
generation, (7) growth opportunities,  (8) the results of financing efforts, (9)
changes in SCE&G's accounting policies,  (10) weather conditions in areas served
by SCE&G, (11) inflation, (12) exposure to environmental issues and liabilities,
(13)  changes  in  environmental  regulations  and  (14)  the  other  risks  and
uncertainties described from time to time in SCE&G's periodic reports filed with
the Securities and Exchange Commission. SCE&G disclaims any obligation to update
any forward-looking statements.

                            SIGNIFICANT DEVELOPMENTS
                             SINCE DECEMBER 31, 1999

Regional Transmission Organization

         On February 9, 2000 the Federal  Energy  Regulatory  Commission  (FERC)
issued FERC Order 2000.  The Order  required  utilities  which operate  electric
transmission  systems to submit plans for the  possible  formation of a regional
transmission  organization  (RTO).  On  October  16,  2000  SCE&G  and two other
southeastern  electric  utilities  filed a joint  request with FERC to establish
GridSouth Transco, LLC (GridSouth). When operational, GridSouth will function as
an independent regional  transmission  company.  Initially,  the three utilities
will continue to own their  respective  transmission  networks,  while GridSouth
will provide  planning and  operational  oversight of the electric  transmission
grid.

LIQUIDITY AND CAPITAL RESOURCES

         On October 7, 2000 the 1,000 megawatt V. C. Summer Nuclear  Station was
removed from service for a planned maintenance and refueling outage scheduled to
last  38  1/2  days.  During  initial  inspection  activities,  plant  personnel
discovered  a small leak  coming  from a  hairline  crack in a weld in a reactor
coolant system pipe. SCE&G has performed extensive ultrasonic testing of similar
welds in the cooling  system,  which  confirmed  that the problem was limited to
this single  weld.  SCE&G will repair the crack prior to  restarting  the plant.
While no specific  duration has yet been  established for the repair,  the plant
should be back in operation by late December. Although SCE&G cannot estimate how
much this repair will add to the cost of the outage, any costs above the amounts
normally  accrued for this  refueling  are expected to be deferred and amortized
over the plant's next 18-month operating cycle. The cost of replacement power is
expected to be recovered through SCE&G's electric fuel adjustment clause.


<PAGE>



     On July 20, 2000 the PSC issued an order  approving  SCE&G's request for an
out-of-period adjustment to increase the cost of gas components of its rates for
natural  gas  service  from  54.334  cents per therm to 68.835  cents per therm,
effective  with the first billing cycle in August 2000. As part of its regularly
scheduled  annual  review of gas costs,  on October 17, 2000 the PSC approved an
increase in the cost of gas component to 78.151 cents per therm,  effective with
the first billing cycle in November 2000.

       On July 5, 2000 the PSC  approved  SCE&G's  request  to  implement  lower
depreciation  rates  for  its  gas  operations.  The new  rates  were  effective
retroactively  to  January  1,  2000 and will  result in a  reduction  in annual
depreciation expense of approximately $2.9 million.

       On September 14, 1999 the PSC approved an  accelerated  capital  recovery
plan for SCE&G's Cope Generating Station. The plan will be implemented beginning
January 1, 2000 for a three-year period. The PSC approved an accelerated capital
recovery  methodology  wherein  SCE&G  may  increase  depreciation  of its  Cope
Generating  Station  in excess of  amounts  that  would be  recorded  based upon
currently   approved   depreciation   rates.   The  amount  of  the  accelerated
depreciation  will be  determined  by SCE&G based on the level of  revenues  and
operating  expenses,  not to exceed $36 million annually without the approval of
the PSC. Any unused  portion of the $36 million in any given year may be carried
forward for possible use in the  succeeding  year.  As of September  30, 2000 no
accelerated  depreciation  has been recorded.  The accelerated  capital recovery
plan will be accomplished through existing customer rates.

        On August 7, 1996 the City of Charleston  executed  30-year electric and
gas franchise agreements with SCE&G. In consideration for the electric franchise
agreement,  SCE&G is paying the City $25 million over seven years (1996  through
2002) and has donated to the City the existing transit assets in Charleston. The
$25 million is included in electric plant-in-service and is being amortized over
the 30 year franchise period. In settlement of environmental claims the City may
have had against  SCE&G  involving  the Calhoun  Park area,  where SCE&G and its
predecessor  companies operated a manufactured gas plant until the 1960's, SCE&G
paid the City $26 million over a four-year  period (1996 through 1999).  As part
of the environmental settlement, SCE&G constructed an 1,100 space parking garage
on the  Calhoun  Park  site  (construction  was  completed  in April  2000)  and
transferred  the facility to the City in exchange for a $16.9  million,  20-year
municipal bond  collateralized  by revenues from, and a mortgage on, the parking
garage.

        The following  table  summarizes how SCE&G  generated and used funds for
its utility  property  additions and construction  expenditures  during the nine
months ended September 30, 2000 and 1999:
<TABLE>

----------------------------------------------------------------------------------- -----------------------------
                                                                                         Nine Months Ended
                                                                                           September 30,
                                                                                         2000           1999
----------------------------------------------------------------------------------- --------------- -------------
                                                                                       (Millions of Dollars)

<S>                                                                                      <C>            <C>
Net cash provided from operating activities                                              $317           $223
Net cash provided used for financing activities                                          (156)            (58)
Cash and temporary cash investments available at the beginning of the period                78             36
----------------------------------------------------------------------------------- --------------- -------------
Net cash available for utility property additions and construction expenditures          $239           $201
----------------------------------------------------------------------------------- --------------- -------------
Funds used for utility property additions and construction expenditures, net of
   noncash allowance for funds used during construction                                  $178           $161
----------------------------------------------------------------------------------- --------------- -------------
Funds used for nonutility property additions and investments                             $ 7              $
                                                                                                    2
=================================================================================== =============== =============
</TABLE>
      On June 14, 2000 SCE&G issued $150 million of First Mortgage Bonds having
an annual  interest  rate of 7.50  percent and  maturing on June 15,  2005.  The
proceeds  from the sale of these bonds were used to pay the  maturity of SCE&G's
$100 million First Mortgage Bonds due June 15, 2000, to reduce  short-term  debt
and for general corporate purposes.



<PAGE>


        SCE&G  anticipates that the remainder of its 2000 cash requirements will
be met through  internally  generated  funds and the  incurrence  of  additional
short-term  debt.  The timing and amount of such  financings  will  depend  upon
market  conditions  and other  factors.  SCE&G expects that it has or can obtain
adequate  sources of financing to meet its projected cash  requirements  for the
next twelve months and for the foreseeable future.  SCE&G's ratio of earnings to
fixed charges for the twelve months ended September 30, 2000 was 4.24.

Environmental Matters

        In  July  2000  the  Environmental  Protection  Agency  (EPA)  requested
information  on SCE&G's repair and  maintenance  of its coal-fired  plants since
1978. This is part of the EPA's New Source Review (NSR) enforcement  initiative,
in which the EPA claims  that  utilities  and others have  committed  widespread
violations  of the Clean Air Act  permitting  requirements  for the past quarter
century.  In November 1999 the EPA filed suit against seven utilities and issued
an  administrative  order to Tennessee  Valley Authority  alleging  numerous NSR
permitting  violations.  The EPA's  allegations  run  counter  to  previous  EPA
guidance regarding the applicability of the NSR permitting requirements.  SCE&G,
along with several other utilities, has routinely undertaken the type of repair,
replacement and maintenance projects that the EPA now claims are illegal. A suit
has not been instituted  against SCE&G, and while it is too early to predict any
potential EPA action,  SCE&G believes that all of its electric  generation units
are properly permitted and have been properly maintained. Because this matter is
in its most preliminary stage with respect to SCE&G,  management cannot estimate
the effects of these matters on future consolidated results of operations,  cash
flows or financial position.

         In  October  1998,  the EPA  issued a final  ruling on  regional  ozone
control that requires revised State  Implementation  Plans (SIPs) for 22 eastern
states and the District of Columbia.  This EPA ruling was challenged in court by
various  states,  industry  and other  interests,  including  the state of South
Carolina.  In March  2000,  the court  upheld  most  aspects of the EPA's  rule.
Petitioners  asked the court to rehear the case and overturn the March decision,
but in June the court declined to rehear the case and lifted its earlier stay of
the states' obligation to revise their SIPs. Industry and State petitioners have
not decided at this time what additional review they may seek.

         The EPA has undertaken  other  ozone-related  actions having  virtually
identical  goals to its October 1998 action.  These  actions have  likewise been
challenged in court by the same or similar parties.  The final resolution of the
October 1998 action is expected to resolve these other ozone-related  actions as
well. The South Carolina  Department of Health and Environmental  Control (DHEC)
is considering  methods by which to reduce utility  emissions of nitrogen oxide.
The date for a final state rulemaking is uncertain,  but will be likely in 2001.
SCE&G will undertake  additional nitrogen oxide control projects during 2000 and
2001,  at a cost of  approximately  $100  million as an interim  step to address
possible contributions to ozone formation in South Carolina. As of September 30,
2000 SCE&G has  incurred  costs of $0.3  million in relation to these  projects.
Depending  on the  resolution  of these  matters,  costs to SCE&G may reach $190
million to meet the full requirements of the 1998 Ozone ruling  expenditures for
these projects will be capitalized, and are expected to be completed by 2004.

         For  additional  information  on  environmental  matters  see  Note  6B
"Contingencies -  Environmental"  of NOTES TO CONDENSED  CONSOLIDATED  FINANCIAL
STATEMENTS appearing in this Quarterly Report on Form 10-Q.


<PAGE>



                              RESULTS OF OPERATIONS
             FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
                AS COMPARED TO THE CORRESPONDING PERIODS IN 1999

Earnings and Dividends

         Net income for the three and nine months ended  September  30, 2000 and
1999 were as follows:
<TABLE>

                                            Three Months Ended                        Nine Months Ended
-------------------------------- ----------------------------------------- -----------------------------------------
(Millions of Dollars)                2000           1999         Change        2000          1999         Change
-------------------------------- -------------- -------------- ----------- ------------- -------------- ------------

Net income derived from:
<S>                                  <C>            <C>           <C>         <C>           <C>            <C>
     Operations                      $82.0          $76.6         $5.4        $180.5        $160.9         $19.6
     Change in accounting              -              -            -             22.3          -            22.3
-------------------------------- -------------- -------------- ----------- ------------- -------------- ------------
     Total net                       $82.0          $76.6         $5.4        $202.8        $160.9         $41.9
income
================================ ============== ============== =========== ============= ============== ============
</TABLE>

         Net income from  operations  for the three months ended  September  30,
2000 increased $5.4 million over the corresponding period in 1999. This increase
is primarily due to decreased other operation and maintenance expenses.

        Net income from  operations for the nine months ended September 30, 2000
increased $19.6 million over the corresponding  period in 1999. This increase is
primarily due to improved  electric margins and is partially offset by increased
other  operation and  maintenance  expenses,  depreciation,  property  taxes and
income taxes.

     For the last several  years,  the market value of the Company's  retirement
plan assets have exceeded the total actuarial  present value of accumulated plan
benefits.  As such, pension income for the three and nine months ended September
30, 2000 was $12.6 million and $30.7 million, compared to $9.6 million and $22.0
million,  respectively  for the  corresponding  periods in 1999.  As a result of
pension income,  employee benefit costs were reduced  approximately $6.9 million
and $16.4 million for the three and nine months ended  September  30, 2000.  For
the  corresponding   periods  in  1999,  employee  benefit  costs  were  reduced
approximately $5.0 million and $11.7 million, respectively.  Additionally, other
income  increased  $3.9 million and $10.0  million for the three and nine months
ended September 30, 2000. For the  corresponding  periods in 1999,  other income
increased $3.1 million and $6.8 million, respectively.

         Earnings  from a  change  in  accounting  resulted  from  recording  of
unbilled  revenue  (See  Note 2 of NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL
STATEMENTS).

         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 1% of income
before  income taxes for the three and nine months ended  September 30, 2000 and
1999.

         SCE&G's  Board of Directors  authorized  payment of dividends on common
stock held by SCANA, as follows:

---------------------- ------------------ --------------------- ----------------
Declaration            Dividend           Quarter               Payment
Date                   Amount             Ended                 Date
---------------------- ------------------ --------------------- ----------------
February 17, 2000      $32.0 million      March 31, 2000        April 1, 2000
April 27, 2000         $32.0 million      June 30, 2000         July 1, 2000
August 16, 2000        $41.0 million      September 30, 2000    October 1, 2000
October 17, 2000       $42.0 million      December 31, 2000     January 1, 2001
---------------------- ------------------ --------------------- ----------------



<PAGE>



Electric Operations

           Changes  in  the  electric   operations   sales  margins   (including
transactions  with affiliates and excluding  unbilled revenue) for the three and
nine months ended September 30, 2000, when compared to the corresponding periods
in 1999, were as follows:
<TABLE>

--------------------------------- ------------------------------------------ -------------------------------------------
                                  Three Months Ended                         Nine Months Ended
(Dollars in Millions)                2000       1999           Change           2000       1999            Change
--------------------------------- ----------- ---------- ------------------- ----------- ---------- --------------------

                                                                             -----------
<S>                                 <C>        <C>       <C>        <C>         <C>       <C>        <C>         <C>
Electric operating revenue          $365.0     $393.3    $(28.3)    (7.2)%      $979.1    $952.4     $26.7       2.8%
                                                                             -----------
Less:  Fuel used in generation         67.6       69.3              (2.5%)        179.8     168.4      11.4      6.8%
                                                          (1.7)
          Purchased power              45.2       41.2       4.0     9.7%         111.9     107.0       4.9      4.6%
--------------------------------- ----------- ---------- ---------           ----------- ---------- ---------
Margin                              $252.2     $282.8    $(30.6)   (10.8)%       $687.4   $677.0     $10.4       1.5%
--------------------------------- =========== ========== ========= --------- =========== ========== ========= ==========

</TABLE>
           Changes in electric  operations  sales margins for the three and nine
months ended  September 30, 2000 reflect  milder weather in the third quarter of
2000, which was partially offset by customer growth throughout the year and more
favorable weather in the first and second quarters of 2000.

Gas Distribution

           Changes in the gas  distribution  sales margins  (excluding  unbilled
revenue) for the three and nine months ended  September 30, 2000,  when compared
to the corresponding periods in 1999, were as follows:
<TABLE>

------------------------------------ ---------------------------------------- -------------------------------------------
                                     Three Months Ended                       Nine Months Ended
(Dollars in Millions)                 2000      1999            Change          2000       1999            Change
------------------------------------ -------- ---------- -------------------- ---------- ---------- ---------------------

<S>                                   <C>       <C>       <C>        <C>       <C>        <C>        <C>        <C>
Gas operating  revenue                $50.0     $37.8     $12.2      32.3%     $201.5     $168.2     $33.3      19.8%
 Less: Gas purchased for resale        40.2      26.7      13.5      50.6%      140.4       104.8     35.6      34.0%
------------------------------------ -------- ---------- ---------            ---------- ---------- ---------
Margin                                $ 9.8     $11.1      $(1.3)   (11.7)%     $ 61.1     $ 63.4     $(2.3)     (3.6%)
------------------------------------ ======== ========== ========= ---------- ========== ========== ========= ===========
</TABLE>

     Gas  distribution  sales  margins  decreased  for the three and nine months
ended  September 30, 2000  primarily as a result of milder weather in the second
and third quarters of 2000, which was partially offset by customer growth.

 Other Operating Expenses

     Changes in other  operating  expenses  for the three and nine months  ended
September 30, 2000 when compared to the  corresponding  periods in 1999, were as
follows:
<TABLE>

-------------------------------------- ---------------------------------------- -----------------------------------------
                                       Three Months Ended                       Nine Months Ended
(Dollars in Millions)                    2000       1999           Change         2000       1999           Change
-------------------------------------- ---------- ---------- ------------------ ---------- --------- --------------------

<S>                                     <C>         <C>      <C>      <C>        <C>        <C>        <C>       <C>
Other operation  and maintenance        $  75.2     $  83.6  $(8.4)   (10.0%)    $229.3     $227.2     $ 2.1     0.9%
Depreciation and amortization              39.6       38.5     1.1     2.9%        118.8     115.0       3.8     3.3%
Other taxes                                25.5       23.9     1.6     6.7%         75.0       71.3      3.7     5.2%
-------------------------------------- ---------- ---------- -------            ---------- --------- ---------
Total                                   $140.3     $146.0    $(5.7)   (3.9%)     $423.1     $413.5    $ 9.6      2.3%
-------------------------------------- ========== ========== ======= ---------- ========== ========= ========= ==========
</TABLE>

     Other  operation  expenses for the three months  ended  September  30, 2000
decreased  primarily  as a result of a net  decrease in employee  benefit  costs
($3.5 million,  including the effect of pension income),  decreased expenses for
storm damage ($2.8  million),  and early  retirement  expenses  recorded in 1999
($3.2 million).  These decreases were partially offset by employee bonuses ($3.9
million).

      Other  operation  expenses  for the nine months ended  September  30, 2000
increased  primarily as a result of employee  bonuses ($9.3 million) and charges
related to the operation of CogenSouth  ($5.9  million).  These  increases  were
partially  offset by a net  decrease in employee  benefit  costs ($8.1  million,
including  the effect of pension  income),  decreased  expenses for storm damage
($1.5 million), and early retirement expenses recorded in 1999 ($3.2 million).

     The increase in depreciation  and  amortization  expenses for the three and
nine months ended  September 30, 2000 resulted from normal  property  additions,
and is partially offset by a reduction in gas depreciation  rates retroactive to
January 1, 2000 (See  LIQUIDITY AND CAPITAL  RESOURCES).  Other taxes  increased
primarily due to increased property taxes.

Other Income

     Other  income  for the three  and nine  months  ended  September  30,  2000
increased  approximately  $1.5  million  and $3.9  million,  respectively,  when
compared to the  corresponding  periods in 1999.  These  increases are primarily
attributable to increased pension income.

Income Taxes

     Income  taxes  for the three  and nine  months  ended  September  30,  2000
increased  approximately  $2.4  million and $13.3  million,  respectively,  when
compared to the corresponding periods in 1999. These increases are primarily due
to the changes in operating income.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

     All financial  instruments  held by SCE&G and described  below are held for
purposes other than trading.

     Interest  rate risk - The table below  provides  information  about SCE&G's
financial  instruments that are sensitive to changes in interest rates. For debt
obligations,  the table  presents  principal  cash  flows and  related  weighted
average interest rates by expected maturity dates.

<TABLE>
                              September 30, 2000
                             Expected Maturity Date
                               --------- ------------- ------------------------------- --------- ----------------
                              (Dollars in Millions)
                                                                                 There-                  Fair
Liabilities                      2000     2001    2002      2003      2004       after       Total       Value
                               --------- ------- -------- --------- ---------- ----------- ----------- ----------

Long-Term Debt:
<S>        <C>                    <C>     <C>     <C>      <C>        <C>       <C>         <C>         <C>
Fixed Rate ($)                    1.3     27.6    27.7     129.5      123.9     1,082.9     1,392.9     1,282.7
Average Interest Rate (%)        6.50     6.72    6.72      6.33       7.52         7.55        7.40
</TABLE>

     While a decrease in interest  rates would  increase the fair value of debt,
it is unlikely that events which would result in a realized loss will occur.








<PAGE>


                           PART II. OTHER INFORMATION

Item 1.   Legal Proceedings

         SCANA Corporation:

         For information  regarding legal proceedings see Note 2 "Rate Matters,"
         of  NOTES  TO  CONSOLIDATED   FINANCIAL  STATEMENTS  appearing  in  the
         Company's  Annual  Report on Form 10-K for the year ended  December 31,
         1999,  and Note 8  "Contingencies"  of NOTES TO CONDENSED  CONSOLIDATED
         FINANCIAL STATEMENTS appearing in this Quarterly Report on Form 10-Q.

         South Carolina Electric  & Gas Company:

         For information  regarding legal proceedings see Note 2 "Rate Matters,"
         of  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  appearing  in South
         Carolina  Electric & Gas  Company's  Annual Report on Form 10-K for the
         year ended  December 31, 1999, and Note 6  "Contingencies"  of NOTES TO
         CONDENSED CONSOLIDATED FINANCIAL STATEMENTS appearing in this Quarterly
         Report on Form 10-Q.

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

Item 6.    Exhibits and Reports  on Form 8-K

         A.  Exhibits

                SCANA Corporation and South Carolina Electric & Gas Company:

                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 during the third quarter 2000 were as follows:

                SCANA:
                Date of Report:  August 26, 2000
                Item reported:  Item 5

                South Carolina Electric & Gas Company:  None

<PAGE>



                                SCANA CORPORATION


                                   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.




                                                 SCANA CORPORATION
                                                  (Registrant)




November 13, 2000                             By: s/M. R. Cannon
                                                  M. R. Cannon
                                                  Controller
                                                 (Principal accounting officer)



<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, 2000                            By:  s/Mark R. Cannon
                                                  Mark R. Cannon
                                                  Controller
                                                 (Principal accounting officer)






























<PAGE>




                                                       EXHIBIT INDEX

           Applicable to
Exhibit     Form 10-Q of
No.        SCANA   SCE&G  Description

2.01           X         X     Agreement and Plan of Merger, dated as of
                               February 16, 1999 as amended and restated as of
                               May 10, 1999, by and among Public Service Company
                               of North Carolina, Incorporated, SCANA
                               Corporation, New Sub I, Inc. and New Sub II, Inc.
                               (Filed as Exhibit 2.1 to Registration
                               Statement No. 333-78227)

3.01             X             Restated Articles of Incorporation of SCANA as
                               adopted on April 26, 1989 (Filed as
                               Exhibit 3-A to Registration Statement No.
                               33-49145)

3.02                     X     Restated Articles of Incorporation of SCE&G, as
                               adopted on December 15, 1993  (Filed as
                               Exhibit 3.01 to Registration Statement No.333-
                               86387)

3.03            X              Articles of Amendment of SCANA, dated April 27,
                               1995 (Filed as Exhibit 4-B to
                               Registration Statement No. 33-62421)

3.04                     X     Articles of Amendment of SCE&G, dated June 7,
                               1994 filed June 9, 1994  (Filed as Exhibit
                               3.02 to Registration Statement No. 333-86387)

3.05                     X     Articles of Amendment of SCE&G, dated November 9,
                               1994 (Filed as Exhibit 3.03 to
                               Registration Statement No. 333-86387)

3.06                     X     Articles of Amendment of SCE&G, dated December 9,
                               1994 (Filed as Exhibit 3.04 to
                               Registration Statement No. 333-86387)

3.07                     X     Articles of Correction of SCE&G, dated January
                               17, 1995 (Filed as Exhibit 3.05 to
                               Registration Statement No. 333-86387)

3.08                     X     Articles of Amendment of SCE&G, dated January 13,
                               1995 and filed January 17, 1995 (Filed
                               as Exhibit 3.06 to Registration Statement No.
                               333-86387)

3.09                     X     Articles of Amendment of SCE&G, dated March 30,
                               1995 (Filed as Exhibit 3.07 to
                               Registration Statement No. 333-86387)

3.10                     X     Articles of Correction of SCE&G - Amendment to
                               Statement filed March 31, 1995, dated
                               December 13, 1995 (Filed as Exhibit 3.08 to
                               Registration Statement No. 333-86387)

3.11                     X     Articles of Amendment of SCE&G, dated December
                               13, 1995 (Filed as Exhibit 3.09 to
                               Registration Statement No. 333-86387)

3.12                     X     Articles of Amendment of SCE&G, dated February
                               18, 1997 (Filed as Exhibit 3-L to
                               Registration Statement No. 333-24919)

3.13                     X     Articles of Amendment of SCE&G, dated February
                               21, 1997 (Filed as Exhibit 3.11 to
                               Registration Statement No. 333-86387)

3.14                     X     Articles of Amendment of SCE&G, dated April 22,
                               1997 (Filed as Exhibit 3.12 to
                               Registration Statement No. 333-86387)



<PAGE>



           Applicable to
Exhibit      Form 10-Q of
No.        SCANA   SCE&G  Description

3.15                    X      Articles of Amendment of SCE&G, dated April 9,
                               1998 (Filed as Exhibit 3.13 to Registration
                               Statement No. 333-86387)

3.16                    X      Articles of Amendment of SCE&G, dated May 19,
                               1999 (Filed as Exhibit 3.16 to Form 10-K for
                               the year ended December 31, 1999)

3.17                    X      Articles of Amendment of SCE&G, dated August 13,
                               1999 (Filed as Exhibit 3.17 to Form 10-K
                               for the year ended December 31, 1999)

3.18                    X      Articles of Amendment of SCE&G, dated March 1,
                               2000 (Filed as Exhibit 3.18 to Form 10-K for
                               the year ended December 31, 1999)

3.19          X                By-Laws of SCANA as revised and amended on
                               February 22, 2000 (Filed as Exhibit 3.19 to Form
                               10-K for the year ended December 31, 1999)

3.20                    X      By-Laws of SCE&G as amended and adopted on
                               February 22, 2000 (Filed as Exhibit 3.20 to Form
                               10-K for the year ended December 31, 1999)



<PAGE>


4.01          X                Articles of Exchange of South Carolina Electric
                               and Gas Company and SCANA Corporation (Filed
                               as Exhibit 4-A to Post-Effective Amendment No. 1
                               to Registration Statement No. 2-90438)

4.02          X                Indenture dated as of November 1, 1989 between
                               SCANA Corporation and The Bank of New York,
                               as Trustee (Filed as Exhibit 4-A to Registration
                               Statement No. 33-32107)

4.03          X         X      Indenture dated as of January 1, 1945, between
                               the South Carolina Power Company  and Central
                               Hanover Bank and Trust, as Trustee, as
                               supplemented by Supplemental Indentures dated
                               respectively as of May 1, 1946, May 1, 1947 and
                               July 1, 1949 (Filed as Exhibit 2-B to
                               Registration Statement No. 2-26459)

4.04          X         X      Fourth Supplemental Indenture dated as of April
                               1, 1950, to Indenture referred to in Exhibit
                               4.03, pursuant to which SCE&G assumed said
                               Indenture (Filed as Exhibit 2-C to Registration
                               Statement No. 2-26459)

4.05          X         X      Fifth through Fifty-third Supplemental Indenture
                               referred to in Exhibit 4.03 dated as of the
                               dates indicated below and filed as exhibits to
                               the Registration Statements whose file
                               numbers are set forth below:

December 1, 1950               Exhibit 2-D        to Registration No. 2-26459
July 1, 1951                   Exhibit 2-E        to Registration No. 2-26459
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


<PAGE>





            Applicable to
Exhibit       Form 10-Q of
No.        SCANA   SCE&G  Description

December 1, 1969               Exhibit 4-O        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 2-B        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 2-A-3      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
May 1, 1999                    Exhibit 4.04       to Registration No. 333-86387

4.06           X          X      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)

4.07           X          X      First Supplemental Indenture to Indenture
                                 referred to in Exhibit 4.07 dated as of June
                                 1, 1993 (Filed as Exhibit 4-G to Registration
                                 Statement No. 33-49421)

4.08           X          X      Second Supplemental Indenture to Indenture
                                 referred to in Exhibit  4.07 dated as of June
                                 15, 1993 (Filed as Exhibit 4-G to Registration
                                 Statement No. 33-57955)


<PAGE>





            Applicable to
Exhibit      Form 10-Q of
No.        SCANA   SCE&G  Description
4.09           X          X      Trust Agreement for SCE&G Trust I (Filed as
                                 Exhibit 4-G to SCE&G Form 10-K for the year
                                 ended December 31, 1997)

4.10           X          X      Certificate of Trust for SCE&G Trust I (Filed
                                 as  Exhibit 4-H to SCE&G Form 10-K for the
                                 year ended December 31, 1997)

4.11           X          X      Junior Subordinated Indenture for SCE&G Trust I
                                 (Filed as Exhibit 4-I to SCE&G Form 10-K
                                 for the year ended December 31, 1997)

4.12           X          X      Guarantee Agreement for SCE&G Trust I (Filed as
                                 Exhibit 4-J to SCE&G Form 10-K for the
                                 year ended December 31, 1997)

4.13           X          X      Amended and Restated Trust Agreement for SCE&G
                                 Trust I (Filed as Exhibit 4-K to SCE&G
                                 Form 10-K for the year ended December 31, 1997)

10.01          X                 SCANA Voluntary Deferral Plan as amended
                                 through October 21, 1997 (Filed as Exhibit
                                 10.01(a) to Registration Statement No. 333-
                                 86803)

10.02          X          X      Supplemental Executive Retirement Plan (Filed
                                 as Exhibit 10.01(b) to Registration
                                 Statement No. 333-86803)

10.03          X                 SCANA Supplementary Voluntary Deferral Plan as
                                 amended and restated through October 21,
                                 1997 (Filed as Exhibit 10-B to SCANA Form 10-K
                                 for the year ended  December 31, 1997)

10.04          X                 SCANA Key Executive Severance Benefits Plan as
                                 amended and restated effective as of
                                 October 21, 1997 (Filed as Exhibit 10.01(c) to
                                 Registration Statement No. 333-86803)

10.05                            X SCANA  Supplementary Key Executive  Severance
                                 Benefits Plan as amended and restated effective
                                 October 21, 1997 (Filed as Exhibit  10.01(d) to
                                 Registration Statement No.
                                 333-86803)

10.06          X                 SCANA Performance Share Plan as amended and
                                 restated effective January 1, 1998  (Filed as
                                 Exhibit 10.01(e) to Registration Statement No.
                                 333-86803)

10.07                            X SCANA Key Employee  Retention Plan as amended
                                 and  restated  effective as of October 21, 1997
                                 (Filed as  Exhibit  10-E to SCANA Form 10-K for
                                 the year ended December 31, 1997)

10.08          X                 Description of SCANA Whole Life Option (Filed
                                 as Exhibit 10-F to SCANA Form 10-K for the
                                 year ended December 31, 1991, under cover of
                                 Form SE, File No. 1-8809)

10.09                            X  Description  of  SCANA  Corporation   Annual
                                 Incentive  Plan (Filed as Exhibit 10-G to SCANA
                                 Form 10-K for the year ended December 31, 1991,
                                 under cover of Form SE, File No. 1-8809)

10.10                     X      Service Agreement between SCE&G and SCANA
                                 Services, Inc., effective April 1, 2000 (Filed
                                 as Exhibit 10.10 to SCANA Form 10-K for the
                                 quarter ended June 30, 2000, File No.  1-8809)

27.01          X                 Financial Data Schedule (Filed herewith)

27.02                     X      Financial Data Schedule (Filed herewith)