<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, DC 20549

                                             
     
                                    FORM 10-Q

(Mark One)

 X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934
   
        For the quarterly period ended   March 31, 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               (I.R.S. Employer    
  of incorporation or organization)           Identification No.)

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

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

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

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

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

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

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

     As of March 31, 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.


1



<PAGE>    


                  SOUTH CAROLINA ELECTRIC & GAS COMPANY

                                  INDEX


PART I.  FINANCIAL INFORMATION                                            Page

   Item 1.  Financial Statements

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

            Consolidated Statements of Income and Retained Earnings
            for the Periods Ended March 31, 1998 and 1997............      5

            Consolidated Statements of Cash Flows for the Periods
            Ended March 31, 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.     16

PART II.  OTHER INFORMATION

   Item 1.  Legal Proceedings.........................................     16

   Item 6.  Exhibits and Reports on Form 8-K..........................     16

Signatures............................................................     17

Exhibit Index.........................................................     18



2




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<TABLE>

                                            PART I
                                      FINANCIAL INFORMATION
Item 1.  Financial Statements.    

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

                                                            March 31,      December 31,
                                                              1998             1997  
                                                              (Millions of Dollars)

ASSETS
Utility Plant:
  Electric.............................................      $4,020            $4,020  
  Gas..................................................         353               353  
  Other................................................          84                84
    Total..............................................       4,457             4,457  
  Less accumulated depreciation and amortization.......       1,443             1,421 
    Total..............................................       3,014             3,036  
  Construction work in progress........................         269               221  
  Nuclear fuel, net of accumulated amortization........          49                53
      Utility Plant, Net...............................       3,332             3,310

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

Current Assets:
  Cash and temporary cash investments..................          20                 6  
  Receivables - customer and other.....................         166               165  
  Inventories (at average cost):                                    
    Fuel...............................................          29                23  
    Materials and supplies.............................          47                48  
  Prepayments..........................................          13                10  
  Deferred income taxes................................          21                21
      Total Current Assets.............................         296               273

Deferred Debits:
  Emission allowances..................................          31                31  
  Environmental........................................          29                32  
  Nuclear plant decommissioning fund...................          51                49  
  Pension asset, net...................................          83                82  
  Other................................................         267               260
      Total Deferred Debits............................         461               454
                 Total.................................      $4,106            $4,054


See notes to consolidated financial statements.









3



<PAGE>

                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 CONSOLIDATED BALANCE SHEETS
                         As of March 31, 1998 and December 31, 1997
                                         (Unaudited)

  <S>             <C>  <S>
                                                            March 31,       December 31,
                                                              1998              1997
                                                               (Millions of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
  Common Equity.........................................      $1,468           $1,447  
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................         106              106
      Total Stockholders' Investment....................       1,574            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.....................................       1,260            1,262
        Total Capitalization............................       2,896            2,877

Current Liabilities:
  Short-term borrowings.................................          57               13   
  Current portion of long-term debt.....................          48               48  
  Accounts payable......................................          50               53  
  Accounts payable - affiliated companies...............          27               32  
  Customer deposits.....................................          17               16  
  Taxes accrued.........................................          30               45  
  Interest accrued......................................          25               22  
  Dividends declared....................................          39               58  
  Other.................................................           8                7
        Total Current Liabilities.......................         301              294

Deferred Credits:
  Deferred income taxes.................................         559              539
  Deferred investment tax credits.......................          89               89
  Reserve for nuclear plant decommissioning.............          51               49
  Postretirement benefits...............................          64               61 
  Other.................................................         146              145
        Total Deferred Credits..........................         909              883
                 Total .................................      $4,106           $4,054
                              

See notes to consolidated financial statements.





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<PAGE> 

                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     For the Periods Ended March 31, 1998 and 1997
                                     (Unaudited)                                 
   <S>     <C>                                                 <C>         <C>
                                                              Three Months Ended    
                                                                   March 31,      
                                                               1998        1997    
                                                            (Millions of Dollars) 
 OPERATING REVENUES:                                  
   Electric................................................    $270        $253 
   Gas.....................................................      88          84     
   Transit.................................................       -           -   
        Total Operating Revenues...........................     358         337   
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation........................      43          38   
   Purchased power (including 
     affiliated purchases).................................      26          24   
   Gas purchased from affiliate  
     for resale............................................      49          48   
   Other operation.........................................      56          52   
   Maintenance.............................................      18          15   
   Depreciation and amortization...........................      26          35   
   Income taxes............................................      33          28   
   Other taxes.............................................      24          24   
        Total Operating Expenses...........................     275         264   
                                   
 OPERATING INCOME..........................................      83          73   
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction...................................       2           2     
        Total Other Income.................................       2           2   
                                                 
 INCOME BEFORE INTEREST CHARGES............................      85          75   

 INTEREST CHARGES (CREDITS): 
   Interest expense........................................      24          24   
   Other interest expense..................................       2           2
   Allowance for borrowed funds 
     used during construction..............................      (2)         (1)  
        Total Interest Charges, net........................      24          25   

INCOME BEFORE PREFERRED DIVIDEND REQUIREMENTS
  ON MANDATORILY REDEEMABLE PREFERRED
  SECURITIES                                                     61          50
PREFERRED DIVIDEND REQUIREMENT OF COMPANY
  - OBLIGATED MANDATORILY REDEEMABLE
  PREFERRED SECURITIES                                            1           -    
    
 NET INCOME................................................      60          50  
 Preferred Stock Cash Dividends 
   (at stated rates).......................................      (2)         (1)  
 Earnings Available for Common Stock.......................      58          49   
 Retained Earnings at Beginning 
   of Period...............................................     438         415   
 Common Stock Cash Dividends  
   Declared................................................     (37)        (34)  
 Retained Earnings at End of Period........................    $459        $430   
 
See notes to consolidated financial statements.

5


<PAGE>

                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended March 31, 1998 and 1997
                                      (Unaudited)
  <S>       <C>                                            <C>            <C>
                                                            Three Months Ended
                                                                March 31,    
                                                           1998           1997
                                                          (Millions of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income...........................................    $ 60           $ 50  
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................      26             35 
    Amortization of nuclear fuel.......................      41              6 
    Deferred income taxes, net.........................      20             17 
    Pension asset......................................      (1)            (4)
    Postretirement benefits............................       3              3
    Allowance for funds used during construction.......      (4)            (3)
    Over collections, fuel adjustment clause...........      16             17   
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............       1             13   
      (Increase) decrease in inventories...............      (5)            (2)   
      Increase (decrease) in accounts payable..........      (9)           (28)
      Increase (decrease) in taxes accrued.............     (15)           (27)  
    Other, net.........................................     (21)             4 
Net Cash Provided From Operating Activities............     112             81

CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC...........................     (82)           (40)
  Nonutility property and investments..................       -             (4)
Net Cash Used For Investing Activities.................     (82)           (44)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................       -             12
  Repayments:                                                                 
    Preferred stock....................................       -             (2) 
  Dividend payments:                                                           
    Common stock.......................................     (56)           (35) 
    Preferred stock....................................      (2)            (1) 
  Short-term borrowings, net...........................      44              9  
  Fuel and emission allowance financings, net..........      (2)             3
Net Cash Used For Financing Activities.................     (16)           (14)         

NET DECREASE IN CASH AND TEMPORARY                
  CASH INVESTMENTS.....................................      14             23 
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......       6              5
CASH AND TEMPORARY CASH INVESTMENTS AT MARCH 31........    $ 20           $ 28
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $2 and $1 for 1998
                   and 1997, respectively).............    $ 21           $ 22
                - Income taxes.........................     (20)            (4) 


See notes to consolidated financial statements.

</TABLE>


6



<PAGE>  

              SOUTH CAROLINA ELECTRIC & GAS COMPANY
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         March 31, 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, because of temperature variations between
seasons of the year, the amounts reported in the Consolidated
Statements of Income are not necessarily indicative of amounts
expected for the year.  In the opinion of management, the
information furnished herein reflects all adjustments, all of a
normal recurring nature 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 March 31, 1998, approximately $236  million and $68 
       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 of
       approximately $80  million and $35  million, respectively
       (excluding deferred income tax assets) are being recovered
       through rates, and the Public Service Commission of South
       Carolina (PSC) has approved accelerated recovery of
       approximately $37  million of these assets.  In the future, as
       a result of deregulation or other changes in the regulatory
       environment, the Company may no longer meet the criteria for
       continued application of SFAS 71 and 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 by July 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 March 31, 1998 approximately $21.8  
       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 March 31, 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 March 31, 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 $8.9  billion.  Each reactor licensee is
       currently liable for up to $79.3  million per reactor owned for
       each nuclear incident occurring at any reactor in the United
       States, provided that not more than $10 million of the
       liability per reactor would be assessed per year.  The
       Company's maximum assessment, based on its two-thirds 
       ownership  of  the  V. C. Summer  Nuclear Station (Summer
       Station), would be approximately $52.9  million per incident,
       but not more than $6.7 million per year.

       The Company currently maintains policies (for itself and on
       behalf of the 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 assessment not to exceed five times its
       annual premium in the event of property damage loss to any
       nuclear generating facility covered under the  NEIL  program. 
       Based  on  the  current annual premium, this retroactive
       premium assessment would not exceed $5.1 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 $29  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 conditionally approved a Remedial
           Investigation Report in March 1997.  Although the Company is
           continuing to investigate cost-effective clean-up
           methodologies, further work is pending EPA approval of the
           final draft of the Remedial Investigation Report.  

           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

     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's regulated and diversified
subsidiaries, (7) the results of financing efforts, (8) changes in
the Company's accounting policies, (9) weather conditions in areas
served by the Company, (10) performance of the telecommunications 
companies  in  which  the  Company  has  made  significant 
investments, (11) inflation, (12) changes in environmental
regulations and (13) 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

     The electric utility industry has begun a major transition
that could lead to expanded market competition and less regulation. 
Deregulation of electric wholesale and retail markets is creating
opportunities to compete for new and existing customers and
markets.  As a result, profit margins and asset values of some
utilities could be adversely affected.  Legislative initiatives at
the Federal and state levels are being considered and, if enacted,
could mandate market deregulation.  The pace of deregulation, the
future prices of electricity, and the regulatory actions which may
be taken by the PSC and FERC in response to the changing
environment cannot be predicted.  However, the FERC, in issuing
Order 888 in April 1996, accelerated competition among electric
utilities by providing for open access to wholesale transmission
service.  Order 888 requires utilities under FERC jurisdiction that
own, control or operate transmission lines to file
nondiscriminatory open access tariffs that offer to others the same
transmission service they provide themselves.  The FERC has also
permitted utilities to seek recovery of wholesale stranded costs
from departing customers by direct assignment.  Approximately two
percent of the Company's electric revenue is under FERC
jurisdiction for the purpose of setting rates for wholesale
service.  Legislation is pending in South Carolina that would
deregulate the state's retail electric market and enable customers
to choose their supplier of electricity.  The Company is not able
to predict whether the legislation will be enacted and, if it is,
the conditions it will impose on utilities that currently operate
in the state and future market participants.



10



<PAGE>

     The Company is aggressively pursuing actions to position
itself strategically for the transformed environment.  To enhance
its flexibility and responsiveness to change, the Company operates
Strategic Business Units.  Maintaining a competitive cost structure
is of paramount importance in the utility's strategic plan.  The
Company has undertaken a variety of initiatives, including
reductions in operation and maintenance costs and in staffing
levels and the accelerated recovery of the Company's electric
regulatory assets.  The Company has also established open access
transmission tariffs and is selling bulk power to wholesale
customers at market-based rates.  Significant new customer and
management information systems will be implemented in 1998. 
Marketing of services to commercial and industrial customers has
been increased significantly.  The Company has obtained long term
power supply contracts with a significant portion of its industrial
customers.  The Company believes that these actions as well as
numerous others that have been and will be taken demonstrate its
ability and commitment to succeed in the new operating environment
to come.

     Regulated public utilities are allowed to record as assets
some costs that would be expensed by other enterprises.  If
deregulation or other changes in the regulatory environment occur,
the Company may no longer be eligible to apply this accounting
treatment and may be required to eliminate such regulatory assets
from its balance sheet.  Although the potential effects of
deregulation cannot be determined at present, discontinuation of
the accounting treatment could have a material adverse effect on
the Company's results of operations if a write-off is required to
be recorded.  It is expected that cash flows and the financial
position of the Company would not be materially affected by the
discontinuation of the accounting treatment.  The Company reported
approximately $236 million and $68  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, on its balance sheet at
March 31, 1998.  

     The Company's generation assets would be exposed to
considerable financial risks in a deregulated electric market.  If
market prices for electric generation do not produce adequate
revenue streams and the enabling legislation or regulatory actions
do not provide for recovery of the resulting stranded costs, the
Company could be required to write down its investment in these
assets.  The Company cannot predict whether any write-downs will be
necessary and, if they are, the extent to which they would
adversely affect the Company's results of operations in the period
in which they are recorded.  As of March 31, 1998, the Company's
net investment in fossil\hydroelectric generation and nuclear
generation assets was $985.5  million and $647.7  million,
respectively.

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

Liquidity and Capital Resources

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




11


<PAGE>

     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 $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.  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 by July 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 three months ended March 31, 1998 and 1997:

                                                                              
                                                  Three Months Ended
                                                       March 31, 
                                                   1998         1997          
                                                 (Millions of Dollars)

Net cash provided from operating activities        $112         $ 81  
Net cash used for financing activities              (16)         (14)  
Cash and temporary cash investments available
  at the beginning of the period                      6            5          
Net cash available for utility property 
  additions and construction expenditures          $102         $ 72          

Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                     $ 82         $ 40          




12


<PAGE>

     On August 7, 1996 the City of Charleston executed 30-year
electric and gas franchise agreements with the Company.  In
consideration for the electric franchise agreement, the Company is
paying the City $25 million over seven years (1996-2002) and has
donated to the City the existing transit assets in Charleston.  The
$25 million is included in electric plant-in-service.  In
settlement of environmental claims the City may have had against
the Company involving the Calhoun Park area, where the Company and
its predecessor companies operated a manufactured gas plant until
the 1960's, the Company is paying the City $26 million over a four-
year period (1996-1999).  As part of the environmental settlement,
the Company has agreed to construct an 1,100  space parking garage
on the Calhoun Park site and to transfer the facility to the City
in exchange for a 20-year municipal bond backed by revenues from
the parking garage and a mortgage on the parking garage.  The total
amount of the bond is not to exceed $16.9 million, the maximum
expected project cost.

     SCANA 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.  In
addition to the cogeneration LLC, Westvaco has entered into a 20-
year contract with the Company for all its electricity requirements
at the North Charleston mill at the Company's standard industrial
rate.   Construction of the plant began in September 1996 and it is
expected to be operational in the fall of 1998.

     The Company anticipates that the remainder of its 1998 cash
requirements  will be met through internally generated funds, the
sales of additional equity securities, additional equity
contributions from SCANA and the incurrence of additional short-
term and long-term indebtedness.  The timing and amount of such
financings will depend upon market conditions and other factors. 
The Company expects that it has or can obtain adequate resources 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 March 31,
1998 was 4.05.

     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 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.  Reporting to the
committee are a group of full time project managers who are
responsible for addressing year 2000 issues and coordinating the
required assessment and remediation efforts.

     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 Company
has begun the assessment process to determine which systems have
year 2000 compliance issues.  All required remediation efforts on
critical systems are expected to be completed by mid-1999.   The
cost of the project is not expected to have a material impact on
the results of operations, financial position or cash flows of the
Company.

     In particular, with regard to the evaluation and remediation
of the year 2000 issue at the Company's Summer Station, the Company
is closely cooperating with other utility companies, 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 the year 2000 issue.

     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 issue.  The extent to which significant customers have
resolved the year 2000 issue, 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, financial position or cash flows of the
Company.

13

<PAGE>
   
              SOUTH CAROLINA ELECTRIC & GAS COMPANY
                     Results of Operations
            For the Three Months ended March 31, 1998
         As Compared to the Corresponding Periods in 1997

Earnings and Dividends

     Net income for the three months ended March 31, 1998 increased
approximately $9.5  million when compared to the corresponding
period in 1997.  Higher electric and gas margins more than offset
the impact of higher operating costs.  Net income for the current
period 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 is a result of a 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 three months ended March 31,
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 is
payable on July 1, 1998 to SCANA.
 
Sales Margins

     The change in the electric sales margin for the three months
ended March 31, 1998, when compared to the corresponding periods in
1997, was as follows:
                                                                             
                                                                             
                                                            Three Months
                                                        Change    % Change   
                                                      (Millions)

Electric operating revenues                              $16.7        6.6
Less:  Fuel used in electric generation                    4.9       12.8
       Purchased power                                     1.6        6.6  
Margin                                                   $10.2        5.4    
   The electric sales margin increased for the three months ended
March 31, 1998 when compared to the corresponding period in 1997
primarily as a result of colder weather and customer growth.



14



<PAGE>
  
     The change in the gas sales margin for the three months ended
March 31, 1998, when compared to the corresponding period in 1997,
was as follows:

                                                                              
                                                            Three Months  
                                                          Change    % Change  
                                                        (Millions)
                                                                               

Gas operating revenues                                    $3.8          4.5   
Less:  Gas purchased for resale                            1.2          4.5
Margin                                                    $2.6          7.0   

     The gas sales margin increased for the three months ended
March 31, 1998, when compared to the corresponding period in 1997
primarily as a result of colder weather, increased negotiated
contract markups and increased interruptible sales attributable to
fewer curtailments.

 Other Operating Expenses

     Changes in other operating expenses, including taxes, for the
three months ended March 31, 1998 when compared to the
corresponding period in 1997, are presented in the following table:

                                                                               
                                                            Three Months  
                                                          Change    % Change   
                                                       (Millions)

Other operation and maintenance                           $ 7.3        10.9
Depreciation and amortization                              (8.7)      (24.8)
Income taxes                                                5.2        18.6  
Total                                                     $ 3.8         2.4    

     Other operation and maintenance expenses for the three months
ended March 31, 1998 increased from 1997 levels primarily as a
result of increases in maintenance costs at electric generating
plants and other operating costs.  The decrease in depreciation and
amortization expenses for the period 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.

15



<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 3
            "Contingencies" of Notes to Consolidated Financial
            Statements appearing in this Quarterly Report on Form 10-Q.

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

Item 6.  Exhibits and Reports on Form 8-K

                A.  Exhibits

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

                B.  Reports on Form 8-K
            
                None



16


<PAGE>



             SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         SIGNATURES

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


                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                        (Registrant)



May 14, 1998              By:  s/Jimmy E. Addison            
                               Jimmy E. Addison
                               Vice President and Controller 
                               (Chief accounting officer)


17


<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 (Filed as 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 (Filed herewith)..  22







# Incorporated herein by reference as indicated.

18


<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.

19



<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.

20



<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





21