SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC 20549

                                        
     
                              FORM 10-Q
(Mark One)

 X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934
   
      For the quarterly period ended   June 30, 1998                  
  
                                          OR

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

      For the transition period from           to           

                           Commission file number 1-3375    

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

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

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

Registrant's telephone number, including area code 803) 217-9000

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

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

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

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

               APPLICABLE ONLY TO CORPORATE ISSUERS:

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

     As of June 30, 1998,  there were issued and outstanding
40,296,147  shares of the registrant's common stock, $4.50  par
value, all of which were held, beneficially and of record, by SCANA
Corporation.



<PAGE>    


                  SOUTH CAROLINA ELECTRIC & GAS COMPANY

                                  INDEX


PART I.  FINANCIAL INFORMATION                                            Page

   Item 1.  Financial Statements

            Consolidated Balance Sheets as of June 30, 1998    
            and December 31, 1997....................................      3

            Consolidated Statements of Income and Retained Earnings
            for the Periods Ended June 30, 1998 and 1997.............      5

            Consolidated Statements of Cash Flows for the Periods
            Ended June 30, 1998 and 1997.............................      6

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

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations.......................     10
   
   Item 3.  Quantitative and Qualitative Disclosure About Market Risk.     15

PART II.  OTHER INFORMATION

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

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

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

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



2


<PAGE>
  
<TABLE>
                                             PART I
                                      FINANCIAL INFORMATION

Item 1.  Financial Statements.    

                             
                              SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   CONSOLIDATED BALANCE SHEETS
                            As of June 30, 1998 and December 31, 1997
                                          (Unaudited)
  <S>     <C>                                                <C>               <C>

                                                             June 30,      December 31,
                                                              1998             1997  
                                                              (Millions of Dollars)

ASSETS
Utility Plant:
  Electric.............................................      $4,030            $4,020  
  Gas..................................................         354               353  
  Other................................................          86                84
    Total..............................................       4,470             4,457  
  Less accumulated depreciation and amortization.......       1,474             1,421 
    Total..............................................       2,996             3,036  
  Construction work in progress........................         309               221  
  Nuclear fuel, net of accumulated amortization........          44                53
      Utility Plant, Net...............................       3,349             3,310

Nonutility Property and Investments, net of 
  accumulated depreciation.............................          17                17

Current Assets:
  Cash and temporary cash investments..................           6                 6  
  Receivables - customer and other.....................         173               165  
  Inventories (at average cost):                                    
    Fuel...............................................          32                23  
    Materials and supplies.............................          46                48  
  Prepayments..........................................          17                10  
  Deferred income taxes................................          21                21
      Total Current Assets.............................         295               273

Deferred Debits:
  Emission allowances..................................          31                31  
  Environmental........................................          28                32  
  Nuclear plant decommissioning fund...................          52                49  
  Pension asset, net...................................          86                82  
  Other................................................         267               260
      Total Deferred Debits............................         464               454
                 Total.................................      $4,125            $4,054


See notes to consolidated financial statements.



3



<PAGE>

                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 CONSOLIDATED BALANCE SHEETS
                         As of June 30, 1998 and December 31, 1997
                                         (Unaudited)
  <S>          <C>                                            <C>              <C>

                                                             June 30,       December 31,
                                                              1998              1997
                                                               (Millions of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
  Common Equity.........................................      $1,472           $1,447  
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................         106              106
      Total Stockholders' Investment....................       1,578            1,553  
Preferred Stock, net (subject to purchase or 
  sinking funds)........................................          12               12  
Company - Obligated Mandatorily Redeemable Preferred
  Securities of the Company's Subsidiary Trust, SCE&G
  Trust I holding solely $50 million, principal amount
  of 7.55% of Junior Subordinated Debentures of the 
  Company, due 2027.....................................          50               50

Long-term debt, net.....................................       1,255            1,262
        Total Capitalization............................       2,895            2,877

Current Liabilities:
  Short-term borrowings.................................          66               13   
  Current portion of long-term debt.....................          48               48  
  Accounts payable......................................          51               53  
  Accounts payable - affiliated companies...............          21               32  
  Customer deposits.....................................          17               16  
  Taxes accrued.........................................          48               45  
  Interest accrued......................................          22               22  
  Dividends declared....................................          40               58  
  Other.................................................           7                7
        Total Current Liabilities.......................         320              294

Deferred Credits:
  Deferred income taxes.................................         557              539
  Deferred investment tax credits.......................          88               89
  Reserve for nuclear plant decommissioning.............          52               49
  Postretirement benefits...............................          68               61 
  Other.................................................         145              145
        Total Deferred Credits..........................         910              883
                 Total .................................      $4,125           $4,054
                              

See notes to consolidated financial statements.

4



<PAGE>

 
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     For the Periods Ended June 30, 1998 and 1997
                                     (Unaudited)                                 
   <S>     <C>                                         <C>         <C>      <C>       <C>
                                                      Three Months Ended  Six Months Ended
                                                           June 30,            June 30,
                                                       1998        1997     1998      1997
                                                               (Millions of Dollars) 
 OPERATING REVENUES:                                  
   Electric..........................................  $299        $247     $569      $500
   Gas...............................................    44          41      132       126
   Transit...........................................     -           1        1         1
        Total Operating Revenues.....................   343         289      702       627
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation..................    54          40       96        78
   Purchased power (including 
     affiliated purchases)...........................    35          27       61        52
   Gas purchased from affiliate  
     for resale......................................    29          27       79        75
   Other operation...................................    55          52      111       104
   Maintenance.......................................    21          19       39        34
   Depreciation and amortization.....................    35          35       61        70
   Income taxes......................................    24          16       58        44
   Other taxes.......................................    23          21       47        44
        Total Operating Expenses.....................   276         237      552       501
                                   
 OPERATING INCOME....................................    67          52      150       126   
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction.............................     2           1        3         3
        Total Other Income...........................     2           1        3         3
                                                 
 INCOME BEFORE INTEREST CHARGES......................    69          53      153       129

 INTEREST CHARGES (CREDITS): 
   Interest expense on long term debt................    24          24       47        48
   Other interest expense............................     2           1        3         4
   Allowance for borrowed funds
     used during construction........................    (2)         (1)      (3)       (3)

        Total Interest Charges, net..................    24          24       47        49

INCOME BEFORE PREFERRED DIVIDEND REQUIREMENTS
  ON MANDATORILY REDEEMABLE PREFERRED
  SECURITIES                                             45          29      106        80
PREFERRED DIVIDEND REQUIREMENT OF COMPANY
  - OBLIGATED MANDATORILY REDEEMABLE
  PREFERRED SECURITIES                                    1           -        2         -
    
 NET INCOME..........................................    44          29      104        80
 Preferred Stock Cash Dividends 
   (at stated rates).................................    (2)         (2)      (4)       (4)
 Earnings Available for Common Stock.................    42          27      100        76
 Retained Earnings at Beginning 
   of Period.........................................   459         430      438       415
 Common Stock Cash Dividends  
   Declared..........................................   (37)        (36)     (74)      (70)
 Retained Earnings at End of Period..................  $464        $421     $464      $421
 
See notes to consolidated financial statements.

5



<PAGE>
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended June 30, 1998 and 1997
                                      (Unaudited)
  <S>       <C>                                            <C>            <C>
                                                             Six Months Ended
                                                                 June 30,    
                                                           1998           1997
                                                          (Millions of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income...........................................    $104           $ 80  
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................      61             70 
    Amortization of nuclear fuel.......................      10             11 
    Deferred income taxes, net.........................      17              8 
    Pension asset......................................      (4)            (8)
    Postretirement benefits............................       7              6
    Allowance for funds used during construction.......      (6)            (6)
    Over collections, fuel adjustment clause...........       9             16   
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............      (8)            19   
      (Increase) decrease in inventories...............      (7)            (5)   
      (Increase) decrease in prepayments...............      (7)            (8)
      Increase (decrease) in accounts payable..........     (13)           (25)
      Increase (decrease) in taxes accrued.............       3             (9)  
    Other, net.........................................     (17)             - 
Net Cash Provided From Operating Activities............     149            149

CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC...........................     (98)           (95)
  Nonutility property and investments..................       -             (4)
Net Cash Used For Investing Activities.................     (98)           (99)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................       -             12
    Issuance of preferred stock........................       -             99
  Repayments:                                                                 
    Preferred stock....................................       -             (2) 
    First and refunding mortgage bonds.................       -            (15)
  Dividend payments:                                                           
    Common stock.......................................     (93)           (69) 
    Preferred stock....................................      (4)            (3) 
  Short-term borrowings, net...........................      53            (75) 
  Fuel and emission allowance financings, net..........      (7)             2
Net Cash Used For Financing Activities.................     (51)           (51)         

NET DECREASE IN CASH AND TEMPORARY                
  CASH INVESTMENTS.....................................       -             (1)
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......       6              5
CASH AND TEMPORARY CASH INVESTMENTS AT JUNE 30.........    $  6           $  4
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $3 for 1998 and 1997....    $ 50           $ 50
                - Income taxes.........................       9             22  


See notes to consolidated financial statements.

</TABLE>

6


<PAGE>
  
               SOUTH CAROLINA ELECTRIC & GAS COMPANY
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         June 30, 1998
                          (Unaudited)

     The following notes should be read in conjunction with the
Notes to 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, 1997.  These are interim
financial statements, and the amounts reported in the Consolidated
Statements of Income are not necessarily indicative of amounts
expected for the year.  In the opinion of management, the
information furnished herein reflects all adjustments, all of a
normal recurring nature except as described in Note 2, which are
necessary for a fair statement of the results for the interim
periods reported.

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

       A.  Basis of Accounting
                 The Company accounts for its regulated utility operations,
       assets and liabilities in accordance with the provisions of
       Statement of Financial Accounting Standards No. 71 (SFAS 71). 
       The accounting standard requires cost-based rate-regulated
       utilities to recognize in their financial statements revenues
       and expenses in different time periods than do enterprises that
       are not rate-regulated.  As a result the Company has recorded,
       as of June 30, 1998, approximately $232  million and $67 
       million of regulatory assets and liabilities, respectively,
       including amounts recorded for deferred income tax assets and
       liabilities of approximately $118 million and $52  million,
       respectively.  The electric and gas regulatory assets
       (excluding deferred income tax assets) of approximately $77 
       million and $35  million, respectively, are being recovered
       through rates, and the Public Service Commission of South
       Carolina (PSC) has approved accelerated recovery of
       approximately $31  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 the write-off is
       recorded, but it is not expected that cash flows or financial
       position would be materially affected.

       B.  Reclassifications

                 Certain amounts from prior periods have been reclassified to
       conform with the 1998 presentation.

2.     RATE MATTERS

       On January 9, 1996 the PSC issued an order granting the Company
       an increase in retail electric rates of 7.34%, which was
       designed to produce additional revenues, based on a test year,
       of approximately $67.5  million annually.  The increase was
       implemented in two phases.  The first phase, an increase in
       revenues of approximately $59.5  million annually, or 6.47%,
       commenced in January 1996.  The second phase, an increase in
       revenues of approximately $8.0 million annually, or .87%, was
       implemented in January 1997.  The PSC authorized a return on
       common equity of 12.0%.  The PSC also approved establishment of
       a Storm Damage Reserve Account capped at $50 million to be
       collected through rates over a ten-year period.  Additionally,
       the PSC approved accelerated recovery of a significant portion
       of the Company's electric regulatory assets (excluding deferred
       income tax assets) and the remaining transition obligation for
       postretirement benefits other than pensions, changing the
       amortization periods to allow recovery by the   end  of  the 
       year  2000.  The  Company's request  to shift,  for  ratemaking 
       purposes, approximately 

7


<PAGE>

       $257  million of depreciation reserves from transmission and
       distribution assets to nuclear production assets was also
       approved.  The Consumer Advocate and two other intervenors
       appealed certain issues in the order to the South Carolina
       Circuit Court, which affirmed the PSC's decisions, and,
       subsequently, to the South Carolina Supreme Court.  In March
       1998, the Company, the PSC and the Consumer Advocate and one of
       the other intervenors reached an agreement that provided for
       the reversal of the shift in depreciation reserves and the
       dismissal of the appeal of all other issues.  The PSC also
       authorized the Company to adjust depreciation rates that had
       been approved in the 1996 rate order for its electric
       transmission, distribution and nuclear production properties to
       eliminate the effect of the depreciation reserve shift and to
       retroactively apply such depreciation rates to February 1996. 
       As a result, a one-time reduction in depreciation expense of
       $5.5  million after taxes was recorded in March 1998.  The
       agreement does not affect retail electric rates.  The remaining
       intervenor continues to contest establishment of the Storm
       Damage Reserve Account and the authorized return on common
       equity.  The Supreme Court heard the case in April 1998 and is
       expected to issue a ruling during 1998.  While the outcome of
       this proceeding is uncertain, the Company does not believe that
       any significant adverse change in the rate order is likely. 
       The Federal Energy Regulatory Commission (FERC) had previously
       rejected the transfer of depreciation reserves for rates
       subject to its jurisdiction.

3.  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 June 30, 1998 approximately $23.5  
       million of retained earnings were restricted by this
       requirement as to payment of cash dividends on common stock.

4.   CONTINGENCIES:

       With respect to commitments at June 30, 1998, 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, 1997.  Contingencies at June 30, 1998
       are as follows:

       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 $9.9  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 PSA) with Nuclear Electric Insurance Limited
       (NEIL) and American Nuclear Insurers (ANI) providing combined
       property and decontamination insurance coverage of $2.0 
       billion for any losses at Summer Station. The Company pays
       annual premiums and, in addition, could be assessed a
       retroactive premium not to exceed five times its annual premium
       in the event of property damage loss to any nuclear generating
       facility covered under the  NEIL  program.  Based  on  the 
       current annual premium, this retroactive premium assessment
       would not exceed $6.1 million.  


8



<PAGE>

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

The Company has an environmental assessment program to identify and
assess current and former operations sites that could require
environmental cleanup.  As site assessments are initiated an
estimate is made of the amount of expenditures, if any, necessary
to investigate and clean up each site.  These estimates are refined
as additional information becomes available; therefore, actual
expenditures could differ significantly from the original
estimates.  Amounts estimated and accrued to date for site
assessment and cleanup relate primarily to regulated operations;
such amounts are deferred (approximately $28  million) and are
being amortized and recovered through rates over a five-year period
for electric operations and an eight-year period for gas
operations.  The deferral includes the costs estimated to be
associated with the matters discussed below.

           In September 1992, the Environmental Protection Agency (EPA)
           notified the Company, the City of Charleston and the
           Charleston Housing Authority of their potential liability for
           the investigation and cleanup of the Calhoun Park area site
           in Charleston, South Carolina.  This site encompasses
           approximately 30 acres and includes properties which were the
           locations for industrial operations, including a wood
           preserving (creosote) plant, one of the Company's
           decommissioned manufactured gas plants, 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  before  cleanup 
           is  initiated.  The  Potentially Responsible Parties (PRPs) 
           have  agreed  with  the  EPA to participate in an innovative
           approach to site investigation and cleanup called "Superfund
           Accelerated Cleanup Model," allowing the pre-cleanup site
           investigation process to be compressed significantly.  The
           PRPs have negotiated an administrative order by consent for
           the conduct of a Remedial Investigation/Feasibility Study and
           a corresponding Scope of Work.  Field work began in November
           1993 and the EPA approved a Remedial Investigation Report in
           February 1997 and a Feasibility Study Report in June 1998. 
           A Record of Decision, which outlines the EPA and PRP's
           agreement as to the extent each PRP is responsible for site
           contamination and the level to which the site must be
           remediated, has not been issued.  However, in July 1998, the
           EPA approved the Company's Removal Action Work Plan for soil
           excavation.  Accordingly, the Company is scheduled to begin
           site soil excavation in August 1998. In addition, the Company
           is continuing to investigate cost-effective clean up
           methodologies.

           In October 1996 the City of Charleston and the Company
           settled all environmental claims the City may have had
           against the Company involving the Calhoun Park area for a
           payment of $26 million over four years (1996-1999) by the
           Company to the City.  The Company is recovering the amount
           of the settlement, which does not encompass site assessment
           and cleanup costs, through rates in the same manner as other
           amounts accrued for site assessments and cleanup as discussed
           above.  As part of the environmental settlement, the Company
           has agreed to construct an 1,100  space parking garage on the
           Calhoun Park site and to transfer the facility to the City
           in exchange for a 20-year municipal bond backed by revenues
           from the parking garage and a mortgage on the parking garage. 
           Construction is expected to begin in 1998.  The total amount
           of the bond is not to exceed $16.9  million, the maximum
           expected project cost.   

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

9



<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

General
  
     The following discussion should be read in conjunction with
Management's Discussion and Analysis of Financial Condition and
Results of Operations appearing in SCE&G's (the Company) Annual
Report on Form 10-K for the year ended December 31, 1997.

     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 the
Company, (4) the impact  of  competition  from  other  energy 
suppliers, (5) the management of the Company's operations, (6)
growth opportunities for the Company, (7) the results of financing
efforts, (8) changes in the Company's accounting policies, (9)
weather conditions in areas served by the Company, (10) inflation,
(11) changes in environmental regulations and (12) 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.




10


<PAGE>

      Material Changes in Capital Resources and Liquidity
                    Since December 31, 1997

Liquidity and Capital Resources

     On January 9, 1996 the PSC issued an order which, among other
things, authorized the Company to earn a return on common equity of
12.0%.  The PSC also approved establishment of a Storm Damage
Reserve Account capped at $50 million to be collected through rates
over a ten-year period.  Additionally, the Company's request to
shift, for ratemaking purposes, approximately $257  million of
depreciation reserves from transmission and distribution assets to
nuclear production assets was approved.  The Consumer Advocate and
two other intervenors appealed certain issues in the order to the
South Carolina Circuit Court, which affirmed the PSC's decisions,
and, subsequently, to the South Carolina Supreme Court.  In March
1998, the Company, the PSC and the Consumer Advocate and one of the
other intervenors reached an agreement that provided for the
reversal of the shift in depreciation reserves and the dismissal of
the appeal of all other issues.  The PSC also authorized the
Company to adjust depreciation rates that had been approved in the
1996 rate order for its electric transmission, distribution and
nuclear production properties to eliminate the effect of the
depreciation reserve shift and to retroactively apply such
depreciation rates to February 1996.  As a result, a one-time
reduction in depreciation expense of $5.5  million after taxes was
recorded in March 1998.  The agreement does not affect retail
electric rates.  See "Results of Operations - Earnings and
Dividends."  The remaining intervenor continues to contest
establishment of the Storm Damage Reserve Account and the
authorized return on common equity.  The Supreme Court heard the
case in April 1998 and is expected to issue a ruling during 1998. 
While the outcome of this proceeding is uncertain, the Company does
not believe that any significant adverse change in the rate order
is likely.  The FERC had previously rejected the transfer of
depreciation reserves for rates subject to its jurisdiction.

     The following table summarizes how the Company generated funds
for its utility property additions and construction expenditures
during the six months ended June 30, 1998 and 1997:

                                                                              
                                                   Six Months Ended
                                                        June 30, 
                                                   1998         1997          
                                                 (Millions of Dollars)

Net cash provided from operating activities        $149         $149  
Net cash used for financing activities              (51)         (51)  
Cash and temporary cash investments available
  at the beginning of the period                      6            5          
Net cash available for utility property 
  additions and construction expenditures          $104         $103          

Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                     $ 98         $ 95          

Funds used for nonutility property
  additions and investments                        $  -         $  4          





11



<PAGE>

     The Environmental Protection Agency has proposed new
regulations relating to nitrogen oxide emissions which, if enacted
in their present form, could have a material adverse effect on the
results of operations, cash flows and financial position of the
Company.

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

     The Company anticipates that the remainder of its 1998 cash
requirements  will be met through internally generated funds and
the incurrence of additional short-term and long-term indebtedness. 
The timing and amount of such financings will depend upon market
conditions and other factors.  The Company expects that it has or
can obtain adequate sources of financings to meet its projected
cash requirements for the next twelve months and for the
foreseeable future.  The ratio of earnings to fixed charges for the
twelve months ended June 30, 1998 was 4.23.

     The year 2000  issue could have a material impact on the
operations of the Company if required modifications and conversions
are not made to ensure that all critical system software and
equipment with embedded processors are date code compliant.  The
Company has formed a steering committee to direct the resolution of
this major issue.  The steering committee, which reports to the
senior officers of the Company and to the board of directors, is
chaired by the chief financial officer of the Company and is
comprised of officers representing all operational areas.  A Year
2000 Project Office, made up of nine full time project managers
plus support personnel is responsible for addressing year 2000
issues and coordinating the required assessment and remediation
efforts.  The Year 2000 Project Office reports directly to the
Steering Committee.

     The Company has completed an initial inventory of impacted
information systems applications, operating software,  hardware and
embedded processors. A risk prioritization of these systems was
completed to determine the Company's critical systems. The
assessment process to determine which systems have year 2000
compliance issues is well underway.  Remediation efforts on
critical systems have begun and are expected to be completed by
mid-1999.  The Company has identified and assigned key employees to
develop year 2000 contingency plans.  The cost of the project is
not expected to have a material impact on the results of
operations, cash flows and financial position of the Company.

     In particular, with regard to the evaluation and remediation
of the year 2000 issue at V. C. Summer Nuclear Station, the Company
is cooperating closely with other utilities, including utilities in
the southeast, that own nuclear power plants.  The utilities are
sharing technical nuclear plant operating and monitoring systems
information to ensure the prompt and effective resolution of year
2000 issues.  

     The Company is communicating with all of its significant
suppliers to determine the extent to which the Company is
vulnerable to those suppliers' failure to remediate their own year
2000 issues.  The extent to which significant customers have
resolved the year 2000 issues, and the resulting impact on the
demand for the Company's products, is not determinable.  There can
be no guarantee that the systems of other companies on which the
Company's systems rely will be timely converted.  A failure to
convert by another company, or a conversion that is incompatible
with the Company's systems, could have a material adverse effect on
the results of operations, cash flows and financial position of the
Company.


12




<PAGE>

 
           SOUTH CAROLINA ELECTRIC & GAS COMPANY
                   Results of Operations
        For the Three and Six Months ended June 30, 1998
        As Compared to the Corresponding Periods in 1997

Earnings and Dividends

     Net income for the three and six months ended June 30, 1998
increased approximately $14.6  million and $23.6  million,
respectively, when compared to the corresponding periods in 1997. 
Higher electric margins more than offset the impact of higher
operating costs.  Net income for the six months ended June 30, 1998
includes a one-time, after-tax adjustment to depreciation expense
of approximately $5.5 million related to a change in depreciation
rates retroactive to February 1996.  This change in rates results
from the reversal of a $257  million shift of depreciation reserves
from electric transmission and distribution assets to nuclear
production assets, previously approved in a PSC rate order in
January 1996.  See "Liquidity and Capital Resources."

     Allowance for funds used during construction (AFC) is a
utility accounting practice whereby a portion of the cost of both
equity and borrowed funds used to finance construction (which is
shown on the balance sheet as construction work in progress) is
capitalized.  Both the equity and the debt portions of AFC are
noncash items of nonoperating income which have the effect of
increasing reported net income.  AFC represented approximately  4%
of income before income taxes for the six months ended June 30,
1998 and 1997, respectively.

     On February 17, 1998 the Company's Board of Directors
authorized the payment of a dividend on common stock  of 
approximately $36.9  million  for  the  quarter  ended March 31,
1998.  The dividend  was  paid on April 1, 1998 to SCANA.

     On April 23, 1998 the Company's Board of Directors authorized
the payment of a dividend on common stock of approximately $37.7 
million for the quarter ended June 30, 1998.  The dividend was paid
on July 1, 1998 to SCANA.
 
Sales Margins

     Changes in the electric sales margin for the three and six
months ended June 30, 1998, when compared to the corresponding
periods in 1997, were as follows:

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

Electric operating revenues       $51.8       20.9       $68.6       13.7
Less:  Fuel used in electric
         generation                14.0       35.3        18.8       24.2
       Purchased power              7.7       28.0         9.3       17.9 
Margin                            $30.1       16.7       $40.5       10.9     
          
   The  electric  sales  margin  increased for the three and six
months ended June 30, 1998 when compared to the corresponding
periods in 1997 primarily as a result of more favorable weather and
customer growth.


13



<PAGE>
  
     Changes in the gas sales margin for the three and six months
ended June 30, 1998, when compared to the corresponding periods in
1997, were as follows:

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

Gas operating revenues            $2.3          5.4       $6.0        4.8  
Less:  Gas purchased for resale    2.6          9.6        3.8        5.1   
Margin                            $(.3)        (2.2)      $2.2        4.3     

     The gas sales margin increased for the six months ended June
30, 1998, when compared to the corresponding period in 1997
primarily as a result of colder weather and increased interruptible
sales attributable to fewer curtailments in the first quarter 1998.

 Other Operating Expenses

     Changes in other operating expenses, including taxes, for the
three and six months ended June 30, 1998 when compared to the
corresponding periods in 1997, are presented in the following
table:

                                                                              

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

Other operation and maintenance    $ 4.6        6.4         $11.8       8.6  
Depreciation and amortization        0.1        0.3          (8.6)    (12.3)  
Income taxes                         8.4       53.7          13.7      31.2 
Other taxes                          2.3       11.0           2.2       4.9  
Total                              $15.4       10.8         $19.1       6.5   


     Other operation and maintenance expenses for the three and six
months ended June 30, 1998 increased from 1997 levels primarily as
a result of increases in costs at electric generating plants and
various operating costs.  The decrease in depreciation and
amortization expenses for the six months ended June 30, 1998
reflects the non-recurring adjustment to depreciation expense
discussed under "Earnings and Dividends."  The changes in income
tax expense reflect the changes in operating income.  The increase
in other taxes for the periods primarily results from increases in
property taxes.


14



<PAGE>




Item 3.  Quantitative and Qualitative Disclosure About Market
         Risk

         With regard to the market risk information disclosed in
         the Company's Annual Report on Form 10-K at December 31,
         1997 there have been no material changes in market risk
         exposure related to interest rate risk.


                                 PART II
                            OTHER INFORMATION


Item 1.  Legal Proceedings

            For information regarding legal proceedings see Note 2 "Rate
            Matters," appearing in the Company's Annual Report on Form
            10-K for the year ended December 31, 1997, and Note 4
            "Contingencies" of Notes to Consolidated Financial
            Statements appearing in this Quarterly Report on Form 10-Q.

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

Item 6.  Exhibits and Reports on Form 8-K

                A.  Exhibits

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

                B.  Reports on Form 8-K
  
                None




15


<PAGE>



                 SOUTH CAROLINA ELECTRIC & GAS COMPANY

                               SIGNATURES

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



                       SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   (Registrant)




August 13,  1998       By:  s/Jimmy E. Addison            
                            Jimmy E. Addison
                            Vice President and Controller 
                            (Chief accounting officer)


16

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

       A. Restated Articles of Incorporation of the
          Company as adopted on December 15, 1993 
          (Exhibit 3-A to Form 10-Q for the quarter 
          ended June 30, 1994, File No. 1-3375)......................    #
       B. Articles of Amendment, dated June 7, 1994,
          filed June 9, 1994 (Exhibit 3-B to Form 10-Q
          for the quarter ended June 30, 1994, File 
          No. 1-3375)
       C. Articles of Amendment, dated November 9, 1994
          (Exhibit 3-C to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       D. Articles of Amendment, dated December 9, 1994
          (Exhibit 3-D to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       E. Articles of Correction, dated January 17, 1995
          (Exhibit 3-E to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       F. Articles of Amendment, dated January 13, 1995
          (Exhibit 3-F to Form 10-K for the year ended
          December 31, 1994, File No. 1-3375)........................   #
       G. Articles of Amendment, dated March 31, 1995
          (Exhibit 3-G to Form 10-Q for the quarter
          ended March 31, 1995, File No. 1-3375).....................   #
       H. Articles of Correction - Amendment to Statement 
          filed March 31, 1995, dated December 13, 1995 
          (Exhibit 3-H to Form 10-K for the year ended
          December 31, 1995, File No. 1-3375)........................   #
       I. Articles of Amendment dated December 13, 1995
          (Exhibit 3-I to Form 10-K for the year ended
          December 31, 1995, File No. 1-3375)........................   #
       J. Copy of By-Laws of the Company as revised and 
          amended on December 17, 1997 (Exhibit 
          4-J to Form 10-K for the year ended 
          December 31, 1997, File No. 1-3375)........................   #
       K. Articles of Amendment dated February 18, 1997
          (Exhibit 3-L to Registration Statement No. 333-
          24919)......................................................  #
       L. Articles of Amendment dated February 21, 1997
          (Exhibit 3-L to Form 10-Q for the quarter ended
          March 31, 1997).............................................  # 
       M. Articles of Amendment dated April 22, 1997
          (Exhibit 3-M to Form 10-Q for the quarter ended
          June 30, 1997)..............................................  # 
       N. Articles of Amendment dated April 9, 1998 (Exhibit 3-N  
          to Form 10-Q for the quarter ended March 31, 1998)..........  #



# Incorporated herein by reference as indicated.

17


<PAGE>

                   SOUTH CAROLINA ELECTRIC & GAS COMPANY           Sequentially 
                                EXHIBIT INDEX                        Numbered  
Number                                                                 Pages 
4. Instruments Defining the Rights of Security
       Holders, Including Indentures
       A. Indenture dated as of January 1, 1945, from the
          South Carolina Power Company (the "Power Company")
          to Central Hanover Bank and Trust Company, as 
          Trustee, as supplemented by three Supplemental 
          Indentures dated respectively as of May 1, 1946, 
          May 1, 1947 and July 1, 1949 (Exhibit 2-B to 
          Registration No. 2-26459)..................................   #
       B. Fourth Supplemental Indenture dated as of April 1, 
          1950, to Indenture referred to in Exhibit 4A, 
          pursuant to which the Company assumed said 
          Indenture (Exhibit 2-C to Registration No. 2-26459)........   #
       C. Fifth through Fifty-second Supplemental Indentures
          to Indenture referred to in Exhibit 4A dated as 
          of the dates indicated below and filed as 
          exhibits to the Registration Statements and 
          1934 Act reports whose file numbers are set 
          forth below................................................   #
    4.  (Continued)
    December 1, 1950   Exhibit 2-D to Registration No. 2-26459
    July 1, 1951       Exhibit 2-E to Registration No. 2-26459
    June 1, 1953       Exhibit 2-F to Registration No. 2-26459
    June 1, 1955       Exhibit 2-G to Registration No. 2-26459
    November 1, 1957   Exhibit 2-H to Registration No. 2-26459
    September 1, 1958  Exhibit 2-I to Registration No. 2-26459
    September 1, 1960  Exhibit 2-J to Registration No. 2-26459
    June 1, 1961       Exhibit 2-K to Registration No. 2-26459
    December 1, 1965   Exhibit 2-L to Registration No. 2-26459
    June 1, 1966       Exhibit 2-M to Registration No. 2-26459
    June 1, 1967       Exhibit 2-N to Registration No. 2-29693
    September 1, 1968  Exhibit 4-O to Registration No. 2-31569
    June 1, 1969       Exhibit 4-C to Registration No. 33-38580
    December 1, 1969   Exhibit 4-Q to Registration No. 2-35388
    June 1, 1970       Exhibit 4-R to Registration No. 2-37363  
    March 1, 1971      Exhibit 2-B-17 to Registration No. 2-40324
    January 1, 1972    Exhibit 4-C to Registration No. 33-38580
    July 1, 1974       Exhibit 2-A-19 to Registration No. 2-51291
    May 1, 1975        Exhibit 4-C to Registration No. 33-38580
    July 1, 1975       Exhibit 2-B-21 to Registration No. 2-53908
    February 1, 1976   Exhibit 2-B-22 to Registration No. 2-55304
    December 1, 1976   Exhibit 2-B-23 to Registration No. 2-57936
    March 1, 1977      Exhibit 2-B-24 to Registration No. 2-58662
    May 1, 1977        Exhibit 4-C to Registration No. 33-38580
    February 1, 1978   Exhibit 4-C to Registration No. 33-38580
    June 1, 1978       Exhibit 2-A-3 to Registration No. 2-61653
    April 1, 1979      Exhibit 4-C to Registration No. 33-38580
    June 1, 1979       Exhibit 4-C to Registration No. 33-38580
    April 1, 1980      Exhibit 4-C to Registration No. 33-38580
    June 1, 1980       Exhibit 4-C to Registration No. 33-38580
    December 1, 1980   Exhibit 4-C to Registration No. 33-38580
    April 1, 1981      Exhibit 4-D to Registration No. 33-49421
    June 1, 1981       Exhibit 4-D to Registration No. 2-73321
    March 1, 1982      Exhibit 4-D to Registration No. 33-49421
    April 15, 1982     Exhibit 4-D to Registration No. 33-49421

# Incorporated herein by reference as indicated.

18


<PAGE>
                SOUTH CAROLINA ELECTRIC & GAS COMPANY 

Exhibit Index (Continued)

Number
    May 1, 1982        Exhibit 4-D to Registration No. 33-49421
    December 1, 1984   Exhibit 4-D to Registration No. 33-49421
    December 1, 1985   Exhibit 4-D to Registration No. 33-49421
    June 1, 1986       Exhibit 4-D to Registration No. 33-49421
    February 1, 1987   Exhibit 4-D to Registration No. 33-49421
    September 1, 1987  Exhibit 4-D to Registration No. 33-49421
    January 1, 1989    Exhibit 4-D to Registration No. 33-49421
    January 1, 1991    Exhibit 4-D to Registration No. 33-49421
    February 1, 1991   Exhibit 4-D to Registration No. 33-49421
    July 15, 1991      Exhibit 4-D to Registration No. 33-49421
    August 15, 1991    Exhibit 4-D to Registration No. 33-49421
    April 1, 1993      Exhibit 4-E to Registration No. 33-49421
    July 1, 1993       Exhibit 4-D to Registration No. 33-57955 
      D.  Indenture dated as of April 1, 1993 from South Carolina
          Electric & Gas Company to NationsBank of Georgia, National
          Association (Filed as Exhibit 4-F to Registration 
          Statement No. 33-49421)......................................  #
      E.  First Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 1, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-49421)..........  #
      F.  Second Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 15, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-57955)..........   # 
      G.  Trust Agreement for SCE&G Trust I  (Filed as
          Exhibit 4-G to Form 10-K for the year ended
          December 31, 1997)...........................................   #
      H.  Certificate of Trust for SCE&G Trust I (Filed as
          Exhibit 4-H to Form 10-K for the year ended
          December 31, 1997)...........................................   #
      I.  Junior Subordinated Indenture for SCE&G Trust I 
          (Filed as Exhibit 4-I to Form 10-K for the year
          ended December 31, 1997).....................................   #
      J.  Guarantee Agreement for SCE&G Trust I
          (Filed as Exhibit 4-J to Form 10-K for the year
          ended December 31, 1997).....................................   #
      K.  Amended & Restated Trust Agreement for SCE&G 
          Trust I (Filed as Exhibit 4-K to Form 10-K for the     
          year ended December 31, 1997)................................   #
 
   10.  Material Contracts
        Not Applicable

   11.  Statement Re Computation of Per Share Earnings
        Not Applicable

   15.  Letter Re Unaudited Interim Financial Information
        Not Applicable

   18.  Letter Re Change in Accounting Principles
        Not Applicable





# Incorporated herein by reference as indicated.

19



<PAGE>
                SOUTH CAROLINA ELECTRIC & GAS COMPANY 

Exhibit Index (Continued)

Number
   19.  Report Furnished to Security Holders
        Not Applicable

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

   23.  Consents of Experts and Counsel
        Not Applicable

   24.  Power of Attorney
        Not Applicable

   27.  Financial Data Schedule (Filed herewith)

   99.  Additional Exhibits
        Not Applicable


20