SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                            
     
                                  FORM 10-Q
(Mark One)

 X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934
   
      For the quarterly period ended   September 30, 1996               
  
                                        OR

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

      For the transition period from           to           

                            Commission file number 1-3375    

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

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

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

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

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

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

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

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

                          APPLICABLE ONLY TO CORPORATE ISSUERS:

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

     As of September 30, 1996, 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 September 30, 1996
         and December 31, 1995........................................      3

       Consolidated Statements of Income and Retained Earnings
         for the Periods Ended September 30, 1996 and 1995............      5

       Consolidated Statements of Cash Flows for the Periods
         Ended September 30, 1996 and 1995............................      6

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

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations.......................     11

PART II.  OTHER INFORMATION

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

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

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

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



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<PAGE>

<TABLE>
                                             PART I
                                      FINANCIAL INFORMATION
                              SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                   CONSOLIDATED BALANCE SHEETS
                            As of September 30, 1996 and December 31, 1995
                                          (Unaudited)
  <S>     <C>                                             <C>                <C>

                                                          September 30,    December 31,
                                                              1996             1995  
                                                             (Thousands of Dollars)

ASSETS
Utility Plant:
  Electric.............................................   $3,752,872         $3,277,530
  Gas..................................................      323,024            320,847
  Transit..............................................        4,106              3,768
  Common...............................................       88,160             91,616
    Total..............................................    4,168,162          3,693,761
  Less accumulated depreciation and amortization.......    1,318,319          1,196,279 
    Total..............................................    2,849,843          2,497,482
  Construction work in progress........................      271,608            613,683
  Nuclear fuel, net of accumulated amortization........       38,573             46,492
      Utility Plant, Net...............................    3,160,024          3,157,657

Nonutility Property and Investments, net of 
  accumulated depreciation.............................       11,668             11,542
Investments............................................           61                 61
      Total Other Property & Investments...............       11,729             11,603

Current Assets:
  Cash and temporary cash investments..................       18,548              6,798
  Receivables - customer and other.....................      170,362            154,816
  Receivables - affiliated companies...................          633              7,132
  Inventories (at average cost):                                    
    Fuel...............................................       21,553             35,812
    Materials and supplies.............................       46,419             43,583
  Prepayments..........................................       10,370             10,158
  Accumulated deferred income taxes....................       19,420             19,420
      Total Current Assets.............................      287,305            277,719

Deferred Debits:
  Emission allowances..................................       30,428             28,514
  Unamortized debt expense.............................       10,799             11,445
  Unamortized deferred return on plant investment......        3,184              6,369 
  Nuclear plant decommissioning fund...................       40,663             36,070
  Other................................................      322,681            273,056
      Total Deferred Debits............................      407,755            355,454
                 Total.................................   $3,866,813         $3,802,433


See notes to consolidated financial statements.



3


<PAGE>

                            SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 CONSOLIDATED BALANCE SHEETS
                         As of September 30, 1996 and December 31, 1995
                                         (Unaudited)
    <S>          <C>    <S>      <C>                       <C>               <C>

                                                          September 30,      December 31,
                                                              1996              1995
                                                               (Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
  Common Equity:
    Common stock ($4.50 par value)......................   $  181,333        $  181,333 
    Premium on common stock and other paid-in capital...      805,646           772,894
    Capital stock expense (debit).......................       (5,347)           (5,391) 
    Retained earnings...................................      418,349           366,236
      Total Common Equity...............................    1,399,981         1,315,072
  Preferred Stock (not subject to purchase or sinking
    funds)..............................................       26,027            26,027
      Total Stockholders' Investment....................    1,426,008         1,341,099
Preferred Stock, net (subject to purchase or 
  sinking funds)........................................       43,354            46,243
Long-term debt, net.....................................    1,274,619         1,279,379
        Total Capitalization............................    2,743,981         2,666,721

Current Liabilities:
  Short-term borrowings.................................       64,000            80,500 
  Current portion of long-term debt.....................       36,363            36,033
  Current portion of preferred stock....................        2,453             2,439
  Accounts payable......................................       44,750            71,731
  Accounts payable - affiliated companies...............       18,170            26,212
  Customer deposits.....................................       13,727            12,518
  Taxes accrued.........................................       89,682            64,008
  Interest accrued......................................       24,380            21,626
  Dividends declared....................................       35,605            33,126
  Other.................................................        7,603             5,953
        Total Current Liabilities.......................      336,733           354,146

Deferred Credits:
  Accumulated deferred income taxes.....................      498,925           488,310
  Accumulated deferred investment tax credits...........       75,884            78,316
  Accumulated reserve for nuclear plant decommissioning.       40,663            36,070
  Other.................................................      170,627           178,870
        Total Deferred Credits..........................      786,099           781,566
                 Total .................................   $3,866,813        $3,802,433
                              

See notes to consolidated financial statements.



4

<PAGE> 
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                     For the Periods Ended September 30, 1996 and 1995
                                     (Unaudited)                                 
   <S>     <C>                             <C>         <C>        <C>            <C>
   
                                            Three Months Ended        Nine Months Ended 
                                               September 30,            September 30,   
                                              1996        1995         1996        1995   
                                                    (Thousands of Dollars) 
 OPERATING REVENUES:                                  
   Electric..............................  $329,078    $307,665   $  860,677     $777,311  
   Gas...................................    34,575      31,376      166,002      143,586  
   Transit...............................       917         896        2,720        2,939 
        Total Operating Revenues.........   364,570     339,937    1,029,399      923,836
                                              
 OPERATING EXPENSES:                               
   Fuel used in electric generation......    53,138      54,321      147,252      129,590
   Purchased power (including 
     affiliated purchases)...............    29,410      25,357       80,941       79,884
   Gas purchased from affiliate  
     for resale..........................    25,090      22,132      107,884       86,686 
   Other operation.......................    56,334      51,916       162,148     157,525
 
   Maintenance...........................    16,053      13,410       47,408       41,914 
   Depreciation and amortization.........    33,950      28,108      100,483       83,482 
   Income taxes..........................    39,738      38,709       92,196       81,317 
   Other taxes...........................    20,622      18,961       62,218       56,073 
        Total Operating Expenses.........   274,335     252,914      800,530      716,471 
                                   
 OPERATING INCOME........................    90,235      87,023      228,869      207,365
                                     
 OTHER INCOME:                                                              
   Allowance for equity funds used                                          
     during construction.................     1,091       2,631        3,282        7,407  
   Other income (loss), net of 
     income taxes........................      (409)       (579)         179         (530)
        Total Other Income...............       682       2,052        3,461        6,877  
   
                                                 
 INCOME BEFORE INTEREST CHARGES..........    90,917      89,075      232,330      214,242  
                                   
 INTEREST CHARGES (CREDITS): 
   Interest expense......................    26,171      27,485       79,351       81,775 
   Allowance for borrowed funds 
     used during construction............    (1,376)     (3,450)      (4,424)      (8,693) 
        Total Interest Charges, net......    24,795      24,035       74,927       73,082 
    
 NET INCOME..............................    66,122      65,040      157,403      141,160
 Preferred Stock Cash Dividends 
   (at stated rates).....................    (1,351)     (1,416)      (4,090)      (4,280) 
 Earnings Available for Common Stock.....    64,771      63,624      153,313      136,880
 Retained Earnings at Beginning 
   of Period.............................   387,778     339,094      366,236      324,101
 Common Stock Cash Dividends 
   Declared..............................   (34,200)    (31,400)    (101,200)     (89,663) 
 Retained Earnings at End of Period......  $418,349    $371,318   $  418,349     $371,318 
 
See notes to consolidated financial statements.



5


<PAGE>
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Periods Ended September 30, 1996 and 1995
                                      (Unaudited)
  <S>       <C>                                         <C>             <C>
                                                           Nine Months Ended
                                                             September 30,   
                                                          1996            1995
                                                          (Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income........................................... $157,403        $141,160
  Adjustments to reconcile net income to net cash
  provided from operating activities:
    Depreciation and amortization......................  100,572          83,589
    Amortization of nuclear fuel.......................   13,282           5,264 
    Deferred income taxes, net.........................   10,040          (3,774)
    Deferred investment tax credits, net...............   (2,432)         (2,422)
    Nuclear refueling accrual..........................   (2,723)          5,218 
    Allowance for funds used during construction.......   (7,706)        (16,100)
    Unamortized loss on reacquired debt................      570          (3,645)
    Over (under) collections, fuel adjustment clause...   (2,025)         20,750 
    Early retirements..................................   (4,766)        (21,291)
    Emission allowances, net of AFC....................   (1,885)         (7,593)
    Changes in certain current assets and liabilities:
      (Increase) decrease in receivables...............   (9,047)         (9,145)
      (Increase) decrease in inventories...............   11,423           4,422  
      Increase (decrease) in accounts payable..........  (35,023)        (44,451)
      Increase (decrease) in taxes accrued.............   25,674          31,790  
      Increase (decrease) in interest accrued..........    2,754           3,608 
    Other, net.........................................    2,545         (10,772)
Net Cash Provided From Operating Activities............  258,656         176,608

CASH FLOWS FROM INVESTING ACTIVITIES:
  Utility property additions and construction 
    expenditures, net of AFC........................... (128,386)       (173,685)
  Nonutility property and investments..................     (137)            (52)
Net Cash Used For Investing Activities................. (128,523)       (173,737)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds:                                                                   
    Equity contributions from parent...................   32,796         133,240
    First Mortgage Bonds...............................     -             99,583
    Issuance on bank note..............................     -              1,019
    Other long-term debt...............................     -               -   
  Repayments:                                                                 
    First and Refunding Mortgage Bonds.................  (22,000)        (48,779)
    Note payable to affiliated companies...............     -            (19,409)
    Repayment of bank loans............................   (1,886)           -    
    Other long-term debt...............................   (1,382)         (11,971)
    Preferred stock....................................   (2,876)         (2,846) 
  Dividend payments:                                                           
    Common stock.......................................  (98,700)        (85,263) 
    Preferred stock....................................   (4,111)         (4,336) 
  Short-term borrowings, net...........................  (16,500)        (13,300) 
  Fuel and emission allowance financings, net..........   (3,724)         27,923 
Net Cash Provided From (Used For) Financing Activities. (118,383)         75,861          

NET INCREASE (DECREASE) IN CASH AND               
  TEMPORARY CASH INVESTMENTS...........................   11,750          78,732 
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1.......    6,798             346
CASH AND TEMPORARY CASH INVESTMENTS AT SEPTEMBER 30.... $ 18,548        $ 79,078
                                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for - Interest (includes capitalized 
                   interest of $4,424 and $8,693)...... $ 74,535        $ 23,500
                - Income taxes.........................   50,576           2,392 
NONCASH FINANCING ACTIVITIES:
  City of Charleston Franchise Fee.....................   25,000            -


See notes to consolidated financial statements.

</TABLE>

6

<PAGE>  


                    SOUTH CAROLINA ELECTRIC & GAS COMPANY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              September 30, 1996
                                   (Unaudited)

     The following notes should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in the Company's Annual Report on
Form 10-K for the year ended December 31, 1995.  These are interim financial
statements and, because of temperature variations between seasons of the year,
the amounts reported in the Consolidated Statements of Income are not
necessarily indicative of amounts expected for the year.  In the opinion of
management, the information furnished herein reflects all adjustments, all of
a normal recurring nature, which are necessary for a fair statement of the
results for the interim periods reported.

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

             A.  Principles of Consolidation

      The Company, a public utility, is a South Carolina corporation organized
      in 1924 and a wholly owned subsidiary of SCANA Corporation (SCANA), a
      South Carolina holding company. The accompanying Consolidated Financial
      Statements include the accounts of the Company and South Carolina Fuel
      Company, Inc. (Fuel Company), an affiliate.  Intercompany balances and
      transactions between the Company and Fuel Company have been eliminated in
      consolidation.

             The Company has entered into agreements with certain affiliates to
      purchase gas for resale to its distribution customers and to purchase
      electric energy.  The Company purchases all of its natural gas
      requirements from South Carolina Pipeline Corporation.  The Company
      purchases all of the electric generation of Williams Station, which is
      owned by South Carolina Generating Company, Inc., under a unit power
      sales agreement.  Such unit power purchases are included in "Purchased
      power."

      B.  Basis of Accounting

      The Company prepares its financial statements in accordance with the
      provisions of Statement of Financial Accounting Standards No. 71 (SFAS
      71), "Accounting for the Effects of Certain Types of Regulations."  The
      accounting standard allows cost-based rate-regulated utilities, such as
      the Company, to recognize in their financial statements revenues and
      expenses in different time periods than do enterprises that are not rate-
      regulated.  As  a  result, the  Company  has  recorded,  as  of 
      September 30, 1996, approximately  $236 million and $54 million of
      regulatory assets and liabilities, respectively, including amounts
      recorded for accumulated deferred income tax assets and liabilities of
      approximately $82 million and $50 million, respectively.  The electric
      regulatory assets of approximately $123 million (excluding accumulated
      deferred income tax assets) are being recovered through rates and, as
      discussed in Note 2, the Public Service Commission of South Carolina
      (PSC) has approved accelerated recovery of approximately $67 million of
      these assets.  In the future, as a result of deregulation or other
      changes in the regulatory environment, the Company may no longer meet the
      criteria for continued application of SFAS 71 and would be required to
      write off its regulatory assets and liabilities.  Such an event could
      have a material adverse effect on the Company's results of operations in
      the period the write-off is recorded.  

      C.  Reclassifications

      Certain amounts from prior periods have been reclassified to conform with
      the 1996 presentation.

7


<PAGE>

2.   RATE MATTERS:

      With respect to rate matters at September 30, 1996, reference is made to
      Note 2 of Notes to Consolidated Financial Statements in the Company's
      Annual Report on Form 10-K for the year ended December 31, 1995.  On July
      10, 1995 the Company filed an application with the PSC for an increase in
      retail electric rates.  On January 9, 1996 the PSC issued an order
      granting the Company an increase of 7.34% which will produce additional
      revenues of approximately $67.5 million annually.  The increase is being
      implemented in two phases.  The first phase, an increase in revenues of
      approximately $59.5 million annually based on a test year, or 6.47%,
      commenced on January 15, 1996.  The second phase will be implemented in
      January 1997 and will produce additional revenues of approximately $8.0
      million annually, or .87% more than current rates.  The PSC authorized a
      return on common equity of 12.0%.  The PSC also approved establishment of
      a Storm Damage Reserve Account capped at $50 million and collected
      through rates over a ten-year period.  Additionally, the PSC approved
      accelerated recovery of a significant portion of the Company's electric
      regulatory assets (excluding accumulated deferred income tax assets) and
      the 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 approximately $257
      million of depreciation reserves from transmission and distribution
      assets to nuclear production assets was also approved.  The PSC's ruling
      does not apply to wholesale electric revenues under the FERC's
      jurisdiction, which constitutes approximately 5% of the Company's
      electric revenues.  

3.   RETAINED EARNINGS:

      The Restated Articles of Incorporation of the Company and the Indenture
      underlying certain of its bond issues contain provisions that may limit
      the payment of cash dividends on common stock.  In addition, with respect
      to hydroelectric projects, the Federal Power Act may require the
      appropriation  of  a portion  of the earnings therefrom.  At September
      30, 1996 approximately $15.5 million of retained earnings were restricted
      as to payment of cash dividends on common stock.

4.   COMMITMENTS AND CONTINGENCIES:

      With respect to commitments at September 30, 1996, 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,
      1995.  No significant changes have occurred with respect to those matters
      as reported therein, except with regard to the Calhoun Park area site
      discussed in Note 4B below.

      Contingencies at September 30, 1996 are as follows:

      A.  Nuclear Insurance

      The Price-Anderson Indemnification Act, which deals with the Company's
      public liability for a nuclear incident, currently establishes the
      liability limit for third-party claims associated with any nuclear
      incident at $8.9 billion.  Each reactor licensee is currently liable for
      up to $79.3 million per reactor owned for each nuclear incident occurring
      at any reactor in the United States, provided that not more than $10
      million of the liability per reactor would be assessed per year.  The
      Company's maximum assessment, based on its two-thirds ownership of Summer
      Station, would be approximately $52.9 million per incident, but not more
      than $6.7 million per year.




8


<PAGE>


      The Company currently maintains policies (for itself and on behalf of the
      PSA) with American Nuclear Insurers (ANI) and Nuclear Electric Insurance
      Limited (NEIL) providing combined property and decontamination insurance
      coverage of $1.9 billion for any losses at Summer Station. The Company
      pays annual premiums and, in addition, could be assessed a retroactive
      premium assessment not to exceed 7 1/2 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 $8.7 million.  

      To the extent that insurable claims for property damage, decontamination,
      repair and replacement and other costs and expenses arising from a
      nuclear incident at Summer Station exceed the policy limits of insurance,
      or to the extent such insurance becomes unavailable in the future, and to
      the extent that the Company's rates would not recover the cost of any
      purchased replacement power, the Company will retain the risk of loss as
      a self-insurer.  The Company has no reason to anticipate a serious
      nuclear incident at Summer Station.  If such an incident were to occur,
      it could have a material adverse impact on the Company's financial
      position and results of operations.
 
      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, estimates are
      made of the cost, if any, to investigate and clean up each site.  These
      estimates are refined as additional information becomes available;
      therefore, actual expenditures could differ significantly from original
      estimates.  Amounts estimated and accrued to date for site assessments
      and cleanup relate primarily to regulated operations; such amounts are
      deferred (approximately $16 million) and are being amortized and
      recovered through rates over a ten-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. 

           The Company owns four decommissioned manufactured gas plant sites
           which contain residues of by-  product chemicals.  The Company
           maintains an active review of the sites to monitor the nature and
           extent  of the residual contamination.

           In September 1992 the Environmental Protection Agency (EPA) notified
           the Company, the City of Charleston and the Charleston Housing
           Authority of their potential liability for the investigation and
           cleanup of the Calhoun  Park  area  site  in  Charleston, South
           Carolina.  This site originally encompassed approximately 18 acres
           and included properties which were the locations for industrial
           operations, including a wood preserving (creosote) plant and one of
           the Company's decommissioned manufactured gas plants.  The original
           scope of this investigation has been expanded to approximately 30
           acres, including adjacent properties owned by the National Park
           Service and the City of Charleston, and private properties.  The site
           has not been placed on the National Priority List, but may be added
           before cleanup is initiated.  The potentially responsible parties
           (PRP) have agreed with the EPA to participate in an innovative
           approach to site investigation and cleanup called "Superfund
           Accelerated Cleanup Model," allowing the pre-cleanup site
           investigation process to be compressed significantly.  The PRPs have
           negotiated an administrative order by consent for the conduct of a
           Remedial Investigation/Feasibility Study and a corresponding Scope of
           Work.  Field work began in November 1993 and a draft Remedial
           Investigation report was submitted to the EPA in February 1995.  The
           Company is currently resolving the comments of the EPA and other
           regulatory agencies related to the draft. 


9


<PAGE>

           In addition contamination may have migrated to the City's aquarium
           site from the manufactured gas plant.  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 by the Company to the City.
           The Company expects to recover the amount of the settlement through
           rates in the same manner as other amounts accrued for site
           assessments and cleanup as discussed above.  The Company is pursuing
           recovery of environmental liabilities from appropriate pollution
           insurance carriers.  The Company does not expect the settlement to
           have a material impact on the Company's financial position or results
           of operations.


10


<PAGE>

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

                                          General

Competition

     The electric utility industry has begun a major transition that could lead
to expanded market competition and less regulatory protection.  Future
deregulation of electric wholesale and retail markets will create 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.  
The pace of deregulation, the future market price of electricity, and the
regulatory actions which may be taken by the PSC and the Federal Energy 
Regulatory Commission (FERC) in response to the changing environment cannot 
be predicted.  However, recent FERC actions will likely accelerate competition
among electric utilities by providing for wholesale transmission access.  In 
April 1996 the FERC issued Order 888, which addresses open access to 
transmission lines and stranded cost recovery. Order 888 requires utilities 
under FERC jurisdiction that own, control or operate transmission lines to 
file nondiscriminatory open access tariffs that offer to others the same 
transmission service they provide themselves.  The FERC has also permitted 
utilities to seek recovery of wholesale stranded costs from departing 
customers by direct assignment.  Approximately 5% of the Company's electric 
revenues is under FERC jurisdiction.   

     The Company is aggressively pursuing actions to position itself
strategically for the transformed environment.  To enhance its flexibility and
responsiveness to change, the Company operates Strategic Business Units. 
Maintaining a competitive cost structure is of paramount importance in the
Company's strategic plan.  The Company has undertaken a variety of initiatives,
including reductions in operation and maintenance costs and in staffing levels. 
In January 1996 the PSC approved (as discussed under "Liquidity and Capital
Resources") the accelerated recovery of the Company's electric regulatory assets
and the shift of depreciation reserves from transmission and distribution assets
to nuclear production assets.  The shift of depreciation reserves was not
approved by the FERC.  In May 1996 the FERC approved the Company's application
establishing open access transmission tariffs and requesting authorization to
sell bulk power to wholesale customers at market-based rates.  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.  Such an event could have a material adverse 
effect on the Company's results of operations in the period the write-off 
is recorded.  The Company reported approximately $236 million and $54 million 
of regulatory assets and liabilities, respectively, including amounts recorded 
for accumulated deferred income tax assets and liabilities of approximately 
$82 million and $50 million, respectively, on its balance sheet at September 
30, 1996.  



11


<PAGE>

                  Material Changes in Capital Resources and Liquidity
                     From December 31, 1995 to September 30, 1996

Liquidity and Capital Resources

     The cash requirements of the Company arise primarily from its operational 
needs and construction program. The ability of the Company to replace existing 
plant investment, as well as to expand to meet future demands 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 expands its construction program, it is 
necessary to seek increases in rates.  As a result,  the Company's financial
position and results of operations are affected by its ability to obtain 
adequate and timely rate relief and in the future will be dependent on the 
Company's  ability to compete in a deregulated environment (see "Competition").

     On  July 10, 1995 the Company filed an application with the PSC for an 
increase in retail electric rates.  On January 9, 1996 the PSC issued an order 
granting the Company an increase of 7.34% which will produce additional 
revenues of approximately $67.5 million annually.  The increase is being
implemented in two phases.  The first phase, an increase in revenues of 
approximately $59.5 million annually based on a test year, or 6.47%,
commenced on January 15, 1996.  The second phase will be implemented in 
January 1997 and will produce additional revenues of approximately 
$8.0 million annually, or .87% more than current rates.  The PSC authorized
a return on common equity of 12.0%.  The PSC also approved establishment 
of a Storm Damage Reserve Account capped at $50 million and collected through 
rates over a ten-year period.  Additionally, the PSC approved accelerated 
recovery of a significant portion of the Company's electric regulatory 
assets (excluding accumulated 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 approximately $257 million of 
depreciation reserves from transmission and distribution assets to nuclear
production assets was also approved.  The PSC's ruling does not apply to 
wholesale electric revenues under the FERC's jurisdiction.

     The following table summarizes how the Company generated funds for its
utility property additions and construction expenditures during the nine 
months ended September 30, 1996 and 1995:

                                                                              
                                                  Nine Months Ended
                                                     September 30,
                                                   1996         1995          
                                                 (Thousands of Dollars)

Net cash provided from operating activities     $258,656     $176,608
Net cash provided from (used for)
  financing activities                          (118,383)      75,861 
Cash and temporary cash investments available
  at the beginning of the period                   6,798          346         
Net cash available for utility property 
  additions and construction expenditures       $147,071     $252,815         

                                              
Funds used for utility property additions 
  and construction expenditures, net of
  noncash allowance for funds used during
  construction                                  $128,386     $173,685         


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 City will receive from the Company $25 million paid 
over seven years and the Company will donate to the City the existing 
transit assets in Charleston.  In settlement of environmental claims the City 
may have had against the Company involving the Calhoun Park area, where 
the Company and its predecessor companies operated a manufactured gas
plant until the 1960's, the Company will pay the City $26 million over a 
four-year period.  As part of the environmental settlement, the Company 
has agreed to construct an 1,100 space parking garage on the Calhoun Park
site and to transfer the facility to the City in exchange for a 20-year 
municipal bond backed by revenues from the parking garage and a mortgage 
on the parking garage.  The total amount of the bond is not to exceed $16.9 
million, the maximum expected project cost.  The Company will invest up to 
$500,000 annually for 30 years in the City to defray the cost of underground 
wiring or other nonstandard service projects within scenic or historic 
districts of the City, which amounts will be matched by city funds.  
The City has agreed to limit such projects to those which can be
paid for from a combined pool of funds created by the Company's and the 
City's contributions.  It is anticipated that the Company's payments for 
underground wiring/nonstandard service will be treated as investments in the
electric distribution rate base by the Company's regulators.

     SCANA and Westvaco Corporation have formed a limited liability company, 
Cogen South LLC, to build and operate a $170 million cogeneration 
facility at Westvaco's Kraft Division Paper Mill in North Charleston, S. C. 
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 partnership, 
Westvaco has entered into a 20-year contract with the Company for all 
its electricity requirements at the Company's standard industrial rate.  
Construction of the plant began August 26, 1996, and it is expected to be 
operational in the fall of 1998.

     The Company anticipates that the remainder of its 1996 cash requirements 
will be met through internally generated funds, 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 ratio of earnings to fixed charges for the twelve months ended 
September 30, 1996 was 3.74.

     The Company expects that it has or can obtain adequate sources of financing
to meet its cash requirements for the next twelve months and for the 
foreseeable future.



13

<PAGE>
                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                 Results of Operations
                For the Three and Nine Months ended September 30, 1996
                   As Compared to the Corresponding Periods in 1995

Earnings and Dividends

     Net  income  for  the  three and nine months ended September 30, 1996 
increased approximately $1.1 million and $16.2 million, respectively, 
when compared to the corresponding periods in 1995.  Increases in the electric
sales margins more than offset increases in operating costs.

     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 3% and 7% of income before income taxes for the nine months ended
September 30, 1996 and 1995, respectively.

     On February 20, 1996 the Company's Board of Directors authorized the 
payment of a dividend on common stock of approximately $32.8 million 
for the quarter ended March 31, 1996.  The dividend was paid on April 1,
1996 to SCANA Corporation.

     On April 25, 1996 the Company's Board of Directors authorized the payment
of a dividend on common stock of $34.2 million for the quarter ended 
June 30, 1996.  The dividend was paid on July 1, 1996 to SCANA Corporation.

     On August 21, 1996 the Company's Board of Directors authorized the payment 
of a dividend on common stock of $34.2 million for the quarter ended 
September 30, 1996.   The dividend was paid on October 1, 1996
to SCANA Corporation.

     On October 22, 1996 the Company's Board of Directors authorized the 
payment of a dividend on common stock of $34.6 million for the quarter ended 
December 31, 1996.  The dividend is payable on January 1, 1997
to SCANA Corporation.

Sales Margins

     The changes in the electric sales margins for the three and nine months 
ended September 30, 1996, when compared to the corresponding periods in 1995,
were as follows:
                                                                             
                                                                              
                                     Three Months             Nine Months
                                  Change    % Change       Change    % Change 
                                  (Millions)               (Millions)  

Electric operating revenues          $21.4     7.0             $83.4     10.7
Less:  Fuel used in electric
         generation                   (1.2)   (2.2)             17.7     13.6
       Purchased power                 4.1    16.0               1.1      1.3 
Margin                               $18.5     8.1             $64.6     11.4


     The electric sales margins increased for the three and nine months
ended September 30, 1996, when compared to the corresponding periods in 1995
 as a result of the rate increase received by the Company in January 1996,
and economic growth factors.

14

<PAGE>

                                 
     The changes in the gas sales margins for the three and nine months ended 
September 30, 1996, when compared to the corresponding periods in 1995, 
were as follows:

                                                                              
                                     Three  Months           Nine Months
                                  Change    % Change      Change    % Change  
                                  (Millions)              (Millions)
 
Gas operating revenues               $3.2      10.2          $22.4      15.6
Less:  Gas purchased for resale       3.0      13.4           21.2      24.5  
Margin                               $0.2       2.6          $ 1.2       2.1 

     The gas sales margins increased slightly for the three and nine months
ended September 30, 1996, when compared to the corresponding periods in 
1995 primarily as a result of increased firm sales.

 Other Operating Expenses

     Changes in other operating expenses, including taxes, for the three and
nine months ended September 30, 1996, when compared to the corresponding 
periods in 1995 are presented in the following table:
                                                                             
                                      Three Months            Nine Months
                                   Change     % Change      Change   % Change 
                                   (Millions)            (Millions)

Other operation and maintenance      $ 7.1      10.8       $10.1        5.1 
Depreciation and amortization          5.8      20.8        17.0       20.4   
Income taxes                           1.0       2.7        10.9       13.4 
Other taxes                            1.7       8.7         6.1       11.0 
Total                                $15.6      10.3       $44.1       10.5 


     Other operation and maintenance expenses for the three and nine months 
ended September 30, 1996 increased from 1995 levels primarily as  a result 
of higher production costs attributable to the Cope Plant which was
brought on line in January 1996.  Increases in depreciation and amortization
expenses for the three and nine months comparisons reflect the addition of 
the Cope Plant and other additions to plant in service.  The increases
in income tax expense for the two periods correspond to the increases in
operating income.  The increases in other taxes reflect higher property taxes 
resulting from property additions and higher millages and assessments.

Interest Charges

     Interest  expense, excluding  the  debt  component  of  AFC, for  the  
three  and  nine  months ended September 30, 1996 decreased $1.3 million 
and $2.4 million, respectively, when compared to the corresponding
periods in 1995 primarily as a result of reductions in outstanding debt.



15


<PAGE>

                         SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                                      Part II
                                            
                                   OTHER INFORMATION


Item 1.  Legal Proceedings

         For information regarding legal proceedings see Note 2 "Rate Matters" 
         and Note 4 "Commitments and Contingencies" of Notes to Consolidated 
         Financial Statements.

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)




November 12, 1996                          By:  s/Jimmy E. Addison            
                                                Jimmy E. Addison
                                                Vice President and Controller 
                                                (Principal 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 June 18, 1996 (Exhibit 3-J to Form 
          10-Q for the quarter ended March 31, 1996)..................  #

    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................................................   #
    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

# Incorporated herein by reference as indicated.


18


<PAGE>

                   SOUTH CAROLINA ELECTRIC & GAS COMPANY           Sequentially 
                                EXHIBIT INDEX                        Numbered  
Number                                                                 Pages 
    4.  (Continued)
    June 1, 1955       Exhibit 2-G to Registration No. 2-26459
    November 1, 1957   Exhibit 2-H to Registration No. 2-26459
    September 1, 1958  Exhibit 2-I to Registration No. 2-26459
    September 1, 1960  Exhibit 2-J to Registration No. 2-26459
    June 1, 1961       Exhibit 2-K to Registration No. 2-26459
    December 1, 1965   Exhibit 2-L to Registration No. 2-26459
    June 1, 1966       Exhibit 2-M to Registration No. 2-26459
    June 1, 1967       Exhibit 2-N to Registration No. 2-29693
    September 1, 1968  Exhibit 4-O to Registration No. 2-31569
    June 1, 1969       Exhibit 4-C to Registration No. 33-38580
    December 1, 1969   Exhibit 4-Q to Registration No. 2-35388
    June 1, 1970       Exhibit 4-R to Registration No. 2-37363  
    March 1, 1971      Exhibit 2-B-17 to Registration No. 2-40324
    January 1, 1972    Exhibit 4-C to Registration No. 33-38580
    July 1, 1974       Exhibit 2-A-19 to Registration No. 2-51291
    May 1, 1975        Exhibit 4-C to Registration No. 33-38580
    July 1, 1975       Exhibit 2-B-21 to Registration No. 2-53908
    February 1, 1976   Exhibit 2-B-22 to Registration No. 2-55304
    December 1, 1976   Exhibit 2-B-23 to Registration No. 2-57936
    March 1, 1977      Exhibit 2-B-24 to Registration No. 2-58662
    May 1, 1977        Exhibit 4-C to Registration No. 33-38580
    February 1, 1978   Exhibit 4-C to Registration No. 33-38580
    June 1, 1978       Exhibit 2-A-3 to Registration No. 2-61653
    April 1, 1979      Exhibit 4-C to Registration No. 33-38580
    June 1, 1979       Exhibit 4-C to Registration No. 33-38580
    April 1, 1980      Exhibit 4-C to Registration No. 33-38580
    June 1, 1980       Exhibit 4-C to Registration No. 33-38580
    December 1, 1980   Exhibit 4-C to Registration No. 33-38580
    April 1, 1981      Exhibit 4-D to Registration No. 33-49421
    June 1, 1981       Exhibit 4-D to Registration No. 2-73321
    March 1, 1982      Exhibit 4-D to Registration No. 33-49421
    April 15, 1982     Exhibit 4-D to Registration No. 33-49421
    May 1, 1982        Exhibit 4-D to Registration No. 33-49421
    December 1, 1984   Exhibit 4-D to Registration No. 33-49421
    December 1, 1985   Exhibit 4-D to Registration No. 33-49421
    June 1, 1986       Exhibit 4-D to Registration No. 33-49421
    February 1, 1987   Exhibit 4-D to Registration No. 33-49421
    September 1, 1987  Exhibit 4-D to Registration No. 33-49421
    January 1, 1989    Exhibit 4-D to Registration No. 33-49421
    January 1, 1991    Exhibit 4-D to Registration No. 33-49421
    February 1, 1991   Exhibit 4-D to Registration No. 33-49421
    July 15, 1991      Exhibit 4-D to Registration No. 33-49421
    August 15, 1991    Exhibit 4-D to Registration No. 33-49421
    April 1, 1993      Exhibit 4-E to Registration No. 33-49421
    July 1, 1993       Exhibit 4-D to Registration No. 33-57955 
      D.  Indenture dated as of April 1, 1993 from South Carolina
          Electric & Gas Company to NationsBank of Georgia, National
          Association (Filed as Exhibit 4-F to Registration 
          Statement No. 33-49421)......................................  #
      E.  First Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 1, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-49421)..........  #
      F.  Second Supplemental Indenture to Indenture referred to 
          in Exhibit 4-D dated as of June 15, 1993 (Filed as 
          Exhibit 4-G to Registration Statement No. 33-57955)..........  # 

   10.  Material Contracts
        Not Applicable

   11.  Statement Re Computation of Per Share Earnings
        Not Applicable

# Incorporated herein by reference as indicated.


19

<PAGE>

                SOUTH CAROLINA ELECTRIC & GAS COMPANY 


Exhibit Index (Continued)

Number
   15.  Letter Re Unaudited Interim Financial Information
        Not Applicable

   18.  Letter Re Change in Accounting Principles
        Not Applicable

   19.  Report Furnished to Security Holders
        Not Applicable

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

   23.  Consents of Experts and Counsel
        Not Applicable

   24.  Power of Attorney
        Not Applicable

   27.  Financial Data Schedule (Filed herewith)

   99.  Additional Exhibits
        Not Applicable


20