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,June 30, 1994

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
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 April 30,July 31, 1994, 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.

SOUTH CAROLINA ELECTRIC & GAS COMPANY

INDEX

PART I. FINANCIAL INFORMATION Page

Item 1. Financial Statements

Consolidated Balance Sheets as of March 31,June 30, 1994
and December 31, 1993................1993......................................... 3

Consolidated Statements of Income and Retained Earnings
for the Periods Ended March 31,June 30, 1994 and 1993.............................1993.................. 5

Consolidated Statements of Cash Flows for the Periods
Ended March 31,June 30, 1994 and 1993...............1993.................................. 6

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

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..............Operations........................ 9

PART II. OTHER INFORMATION

Item 1. Legal Proceedings................................Proceedings.......................................... 12

Item 6. Exhibits and Reports on Form 8-K.................8-K........................... 12

Signatures...................................................Signatures............................................................. 13

Exhibit Index................................................Index.......................................................... 14

PART I
FINANCIAL INFORMATION
SOUTH CAROLINA ELECTRIC & GAS COMPANY
CONSOLIDATED BALANCE SHEETS
As of March 31,June 30, 1994 and December 31, 1993
(Unaudited)

March 31,June 30, December 31,
1994 1993
ASSETS (Thousands of Dollars)

ASSETS
Utility Plant:
Electric............................................. $3,069,928$3,082,443 $3,067,881
Gas.................................................. 295,519296,477 272,506
Transit.............................................. 3,7703,774 3,769
Common............................................... 73,39675,983 72,804
Total.............................................. 3,442,6133,458,677 3,416,960
Less accumulated depreciation and amortization....... 1,126,6341,148,798 1,097,531
Total.............................................. 2,315,9792,309,879 2,319,429
Construction work in progress........................ 411,250471,804 338,677
Nuclear fuel, net of accumulated amortization........ 33,68931,541 29,087
Utility Plant, Net............................... 2,760,9182,813,224 2,687,193

Nonutility property and investments (net of
accumulated depreciation)............................ 12,41912,609 12,709

Current Assets:
Cash and temporary cash investments.................. 16,3331,967 193
Receivables - customer and other..................... 112,178117,294 119,296
Receivables - affiliated companies................... 98223,859 244
Inventories (at average cost):
Fuel............................................... 27,99626,410 31,192
Materials and supplies............................. 42,80443,767 43,372
Prepayments.......................................... 12,81615,991 10,089
Accumulated deferred income taxes.................... -2,057 9,015
Total Current Assets............................. 213,109231,345 213,401

Deferred Debits:
Unamortized debt expense............................. 10,89510,731 11,060
Unamortized deferred return on plant investment...... 13,79912,737 14,860
Nuclear plant decommissioning fund................... 26,42327,743 25,103
Other................................................ 223,707238,649 225,613
Total Deferred Debits............................ 274,824289,860 276,636
Total................................. $3,261,270$3,347,038 $3,189,939

See notes to consolidated financial statements.

SOUTH CAROLINA ELECTRIC & GAS COMPANY
CONSOLIDATED BALANCE SHEETS
As of March 31,June 30, 1994 and December 31, 1993
(Unaudited)

March 31,June 30, December 31,
1994 1993
(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... 600,695614,160 583,785
Capital stock expense (debit)....................... (5,470)(5,467) (5,497)
Retained earnings................................... 307,414300,700 291,713
Total Common Equity............................... 1,083,9721,090,726 1,051,334
Preferred stock (Not subject to purchase or sinking
funds).............................................. 26,027 26,027
Total Stockholders' Investment.................... 1,109,9991,116,753 1,077,361
Preferred stock, net (Subject to purchase or
sinking funds)........................................ 51,07950,856 52,840
Long-term debt, net..................................... 1,098,3221,199,752 1,097,043
Advances from affiliated companies...................... 6,196 -
Total Capitalization............................ 2,265,5962,367,361 2,227,244

Current Liabilities:
Short-term borrowings................................. 83,40515,500 1,011
Current portion of long-term debt..................... 13,48916,651 13,719
Current portion of preferred stock.................... 2,4962,486 2,504
Accounts payable...................................... 40,30836,344 68,182
Accounts payable - affiliated companies............... 19,06437,484 28,630
Estimated rate refunds and related interest........... 1,7821,871 2,509
Customer deposits..................................... 12,55412,405 12,207
Taxes accrued......................................... 19,72722,465 39,965
Interest accrued...................................... 20,14017,758 17,764
Dividends declared.................................... 29,66331,122 29,982
Accumulated deferred income taxes..................... 4,327 -
Other................................................. 12,37819,159 10,042
Total Current Liabilities....................... 259,333213,245 226,515

Deferred Credits:
Accumulated deferred income taxes..................... 482,614487,480 480,808
Accumulated deferred investment tax credits........... 83,96683,155 84,447
Accumulated reserve for nuclear plant decommissioning. 26,42327,743 25,103
Other................................................. 143,338168,054 145,822
Total Deferred Credits.......................... 736,341766,432 736,180
Total ................................. $3,261,270$3,347,038 $3,189,939

See notes to consolidated financial statements.

SOUTH CAROLINA ELECTRIC & GAS COMPANY
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Periods Ended March 31,June 30, 1994 and 1993
(Unaudited)
Three Months Ended March 31,Six Months Ended
June 30, June 30,
1994 1993 1994 1993
(Thousands of Dollars)
OPERATING REVENUES:
Electric.......................................... $234,889 $207,646$225,219 $214,070 $460,108 $421,716
Gas............................................... 77,411 70,80736,866 29,387 114,278 100,194
Transit........................................... 1,021 788948 1,028 1,969 1,816
Total Operating Revenues..................... 313,321 279,241263,033 244,485 576,355 523,726

OPERATING EXPENSES:
Fuel used in electric generation.................. 40,993 35,82146,940 41,092 87,933 76,913
Purchased power (including affiliated
purchases)...................................... 28,468 25,67621,824 26,784 50,292 52,459
Gas purchased from affiliate for resale........... 43,956 39,81724,444 18,399 68,399 58,216
Other operation................................... 51,377 46,58053,971 50,935 105,348 97,516
Maintenance....................................... 14,72514,972 15,477 29,697 30,954
Depreciation and amortization..................... 26,690 25,32526,752 25,249 53,442 50,574
Income taxes...................................... 26,427 17,96513,497 10,311 39,925 28,276
Other taxes....................................... 17,165 17,30617,317 17,304 34,483 34,611
Total Operating Expenses..................... 249,801 223,967219,717 205,551 469,519 429,519

OPERATING INCOME.................................... 63,520 55,27443,316 38,934 106,836 94,207

OTHER INCOME:
Allowance for equity funds used
during construction............................. 2,073 2,3381,911 2,413 3,984 4,751
Other income (loss),net of income taxes........... (101) (212)(162) (282) (263) (494)
Total Other Income........................... 1,972 2,1261,749 2,131 3,721 4,257

INCOME BEFORE INTEREST CHARGES...................... 65,492 57,40045,065 41,065 110,557 98,464

INTEREST CHARGES (CREDITS):
Interest expense.................................. 21,775 22,39422,396 21,156 44,171 43,550
Allowance for borrowed funds used
during construction............................. (1,623) (1,814)(1,679) (1,418) (3,302) (3,233)
Total Interest Charges, Net.................. 20,152 20,58020,717 19,738 40,869 40,317

NET INCOME.......................................... 45,340 36,82024,348 21,327 69,688 58,147
Preferred Stock Cash Dividends (at stated
rates)............................................ (1,539) (1,567)(1,462) (1,564) (3,001) (3,131)
Earnings Available for Common Stock................. 43,801 35,25322,886 19,763 66,687 55,016
Retained Earnings at Beginning of Period............ 307,414 270,515 291,713 262,262
Common Stock Cash Dividends Declared................ (28,100) (27,000)(29,600) (27,500) (57,700) (54,500)
Retained Earnings at End of Period.................. $307,414 $270,515$300,700 $262,778 $300,700 $262,778

See notes to consolidated financial statements.

SOUTH CAROLINA ELECTRIC & GAS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended March 31,June 30, 1994 and 1993
(Unaudited)

ThreeSix Months Ended
March 31,June 30,
1994 1993
(Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................... $ 45,34069,688 $ 36,82058,147
Adjustments to reconcile net income to net cash
provided from operating activities:
Depreciation and amortization...................... 26,729 25,36353,520 50,649
Amortization of nuclear fuel....................... 3,835 3,5368,885 6,920
Deferred income taxes, net......................... 14,909 31,50413,167 35,083
Deferred investment tax credits, net............... (481) (811)(1,292) (1,622)
Net regulatory asset-adoption of SFAS No. 109...... (929) (22,897)(1,630) (23,998)
Nuclear refueling accrual.......................... 1,756 5343,763 (9,143)
Allowance for funds used during construction....... (3,696) (4,152)(7,286) (7,984)
Over (under) collections, fuel adjustment clause... 5,053 4,584(2,018) (1,004)
Changes in certain current assets and liabilities:
(Increase) decrease in receivables................ 6,380 10,627(21,613) (3,607)
(Increase) decrease in inventories................ 3,764 1,2434,387 6,144
Increase (decrease) in accounts payable........... (36,546) (14,003)(21,423) (22,862)
Increase (decrease) in estimated rate refunds
and related interest............................ (727) (14,146)(638) (15,011)
Increase (decrease) in taxes accrued.............. (20,238) (32,228)
Increase (decrease) in interest accrued........... 2,376 (9,315)(17,500) (19,135)
Other, net......................................... 2,483 (4,949)21,648 (6,603)
Net Cash Provided From Operating Activities............ 50,008 11,710101,658 45,974

CASH FLOWS FROM INVESTING ACTIVITIES:
Utility property additions and construction
expenditures....................................... (110,608) (55,156)(193,867) (126,371)
Increase in other property and investments........... (136) (31)(322) (75)
Principal noncash items:
Allowance for funds used during construction....... 3,696 4,1527,286 7,984
Transfer of assets from SCANA...................... 6,285 -
Net Cash Used For Investing Activities................. (100,763) (51,035)(180,618) (118,462)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds:
Issuance of other long-term debt................... 99,000 -
Issuance of First Mortgage Bonds................... - 100,000
Equity contribution from parent.................... 10,652 13,83724,120 27,507
Repayments:
First and Refunding Mortgage Bonds................. - (47,965)
Other long-term debt............................... (207) -(796) (25)
Preferred stock.................................... (1,770) (1,764)(2,002) (1,991)
Dividend payments:
Common stock....................................... (28,400) (26,741)(56,500) (53,741)
Preferred stock.................................... (1,558) (1,606)(3,061) (3,169)
Short-term borrowings, net........................... 82,394 43,29514,489 54,391
Fuel financings, net................................. 482 5,9147,043 (3,855)
Advances - affiliated companies, net................. 5,302 (839)(1,559) (1,697)
Net Cash Provided From Financing Activities............ 66,895 32,09680,734 69,455

NET INCREASE (DECREASE) IN CASH AND
TEMPORARY CASH INVESTMENTS........................... 16,140 (7,229)1,774 (3,033)
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1....... 193 24,302

CASH AND TEMPORARY CASH INVESTMENTS AT MARCH 31........JUNE 30......... $ 16,3331,967 $ 17,07321,269

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for - Interest.............................Interest (includes capitalized
interest of $3,302 and $3,233)...... $ 19,23366,057 $ 12,86642,549
- Income taxes......................... 2,754 12,80629,963 21,814

See notes to consolidated financial statements.

SOUTH CAROLINA ELECTRIC & GAS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31,June 30, 1994
(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, 1993. 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 assets of the former Peoples Natural Gas Company of
South Carolina, which were owned by SCANA and operated by
the Company, were transferred to the Company on January 1,
1994. The transaction did not have a significant impact on
the Company's financial position or results of operations.

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. Classification of Short-Term Obligations:

On July 21, 1994 the Company issued $100 million of First
Mortgage Bonds, 7.70% series due July 15, 2004 to repay
short-term borrowings in a like amount. Accordingly,
short-term borrowings in the amount of $99 million are
included in "Long-term debt, net."

C. Reclassifications:

Certain amounts from prior periods have been reclassified
to conform with the 1994 presentation.

2. RATE MATTERS:

With respect to rate matters at March 31,June 30, 1994, 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, 1993. No changes
have occurred with respect to those matters as reported
therein except as shown below.

On March 31,May 18, 1994 the Federal Energy Regulatory Commission
(FERC) ordered the Company filedto refund certain amounts to its
wholesale customers. The refund was ordered because the
retail rate on which wholesale rates were based had been
reduced and refunds had been made to retail customers in
response to an application with Theorder of the South Carolina Public Service
Commission (PSC) forissued on January 19, 1993. The Company
refunded $1.1 million, including interest, to its wholesale
customers on July 28, 1994.

In June 1994 the eliminationCompany placed into effect the second
phase of the retail electric rate increase approved by the
PSC on June 7, 1993. The new rates will produce an
increase in electric operating revenue of $18.5 million
annually, based on a test year.

On June 6, 1994 the PSC issued an order denying the
Company's request that the $.40 fare for low income riders
of the Company's transit system. A hearing is scheduled for May 31,
1994.system be eliminated. The Company
has appealed the PSC's order to the South Carolina Circuit
Court.

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 March 31,June 30, 1994 approximately $10.7 million of retained
earnings were restricted as to payment of dividends on
common stock.

4. COMMITMENTS AND CONTINGENCIES:

With respect to commitments at March 31,June 30, 1994, 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, 1993. No
significant changes have occurred with respect to those
matters as reported therein.

Contingencies at March 31,June 30, 1994 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 $9.4
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-
thirdstwo-thirds ownership of
Summer Station, would not exceed 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
$1.4 billion for any losses in excess of $500 million
pursuant to existing primary coverages (with ANI) on Summer
Station. The Company pays annual premiums and, in addition,
could be assessed a retroactive premium not to exceed 7 1/2
times its annual premium in the event of property damage
loss to any nuclear generating facilities covered by NEIL.
Based on the current annual premium, this retroactive
premium would not exceed approximately $8.1 million.

To the extent that insurable claims for property damage,
decontamination, repair and replacement and other costs and
expenses arising from a nuclear incident at Summer Station
exceed the policy limits of insurance, or to the extent
such insurance becomes unavailable in the future, and to
the extent that the Company's rates would not recover the
cost of any purchased replacement power, the Company will
retain the risk of loss as a self-insurer. The Company has
no reason to anticipate a serious nuclear incident at
Summer Station. If such an incident were to occur, it
could have a materially adverse impact on the Company's
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 significantly differ from the original
estimates. Amounts estimated and accrued to date for site
assessment and cleanup (approximately $22.9 million) relate primarily to regulated
operations; such amounts have been deferred (approximately
$23.4 million) and are being amortized and recovered
through rates over a ten year period.

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

Material Changes in Capital Resources and Liquidity
From December 31, 1993 to March 31,June 30, 1994

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 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
future financial position and results of operations will be
impacted by its ability to obtain adequate and timely rate relief.

The following table summarizes how the Company generated funds
for its utility property additions and construction expenditures
during the threesix months ended March 31,June 30, 1994 and 1993:

ThreeSix Months Ended
March 31,June 30,
1994 1993
(Thousands of Dollars)

Net cash provided from operating activities $101,658 $ 50,008 $11,71045,974
Net cash provided from financing activities 66,895 32,09680,734 69,455
Cash and temporary cash investments available
at the beginning of the period 193 24,302
Net cash available for utility property
additions and construction expenditures $117,096 $68,108$182,585 $139,731

Funds used for utility property additions
and construction expenditures, net of
noncash allowance for funds used during
construction $106,912 $51,004$180,296 $118,387

In June 1994 the Company placed into effect the second phase
of the retail electric rate increase approved by the South Carolina
Public Service Commission on June 7, 1993.

On July 21, 1994, the Company issued $100 million of First
Mortgage Bonds, 7.70% series due July 15, 2004 to repay short-term
borrowings in a like amount. Accordingly, short-term borrowings in
the amount of $99 million are included in "Long-term debt, net."

The Company anticipates that the remainder of its 1994 cash
requirements will be met primarily through internally generated
funds, sales of additional 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 ratio of earnings to fixed charges for the twelve months
ended March 31,June 30, 1994 was 3.78.3.82.

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.

SOUTH CAROLINA ELECTRIC & GAS COMPANY
Results of Operations
For the ThreeSix Months Ended March 31,June 30, 1994
As Compared to the Corresponding Period in 1993

Earnings and Dividends

Net income for the three and six months ended March 31,June 30, 1994
increased approximately $8.5$3.0 million and $11.5 million,
respectively, when compared to the corresponding periodperiods in 1993
primarily due to an increase in the electric operating margin.

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
5%9% and 8%12% of income before income taxes for the three months
ended March 31,June 30, 1994 and 1993, respectively.

On February 15, 1994 the Company's Board of Directors
authorized the payment of a dividend on common stock of
$28,100,000respectively, and approximately 7%
and 9% for the quartersix months ended March 31, 1994. The dividend
was paid on April 1,June 30, 1994 to SCANA Corporation, the Company's
parent.and 1993,
respectively.

On April 28, 1994 the Company's Board of Directors authorized
the payment of a dividend on common stock of $29,600,000 for the
quarter ended June 30, 1994. The dividend is
payablewas paid on July 1, 1994
to SCANA Corporation, the Company's parent.

Sales Margins

The changechanges in the electric sales margins for the three and
six months ended March 31,June 30, 1994 when compared to the corresponding
periodperiods in 1993 waswere as follows:

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

Electric operating revenues $27.3 13.1$11.1 5.2 $38.4 9.1
Less: Fuel used in electric
generation 5.2 14.45.8 14.2 11.0 14.3
Purchased power 2.8 10.9(5.0) (18.5) (2.1) (4.1)

Margin $19.3 13.2$10.3 7.0 $29.5 10.1

The electric sales marginmargins increased for the three and six
months ended March 31,June 30, 1994 compared to the corresponding periodperiods
in 1993 primarily due to higher kilowatt hour sales due to increased
customer usage associated with a period of extremely cold weather
during the first quarter of 1994. In addition, the electric
sales margin includes an increase in retail electric rates
which was effective beginning in June 1993.1993 and increases in
customer sales due to customer growth, reflecting a general
improvement in the economy. The second phase of the retail
electric rate increase, which was placed into effect in June 1994,
also contributed to the increase in electric sales margins.

The changechanges in the gas sales margins for the three and six
months ended March 31,June 30, 1994 when compared to the corresponding
periodperiods in 1993 waswere as follows:

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

Gas operating revenues $6.6 9.3$7.5 25.5 $14.1 14.1
Less: Gas purchased for resale 4.1 10.46.1 32.9 10.2 17.5
Margin $2.5 8.0$1.4 13.1 $ 3.9 9.3

The increase in the gas sales margin for the three and six
months is primarily due to recoveries under the weather
normalization adjustment (WNA) as a result of milder weather during
the second quarter of 1994 and to increased sales due toas a result of
the transfer of the operations of the former Peoples Natural Gas
Company of South Carolina from SCANA Corporation to the Company in
January 1994.

The increase in the gas sales margin for the three months also
includes increased sales partially offset by reduced recoveries
under the weather normalization adjustment, both due to colder
weather during the first quarter of 1994.

Other Operating Expenses

Increases (decreases) in other operating expenses, including
taxes, for the three and six months ended March 31,June 30, 1994
compared to the corresponding periodperiods in 1993 are presented in the
following table:

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

Other operation and maintenance $2.5 3.8 $ 4.0 6.56.6 5.1
Depreciation and amortization 1.4 5.41.5 6.0 2.9 5.7
Income taxes 8.5 47.13.2 30.9 11.6 41.2
Other taxes (0.2) (0.8)- - (0.1) (0.4)

Total $13.7 11.2$7.2 6.1 $21.0 8.7

Other operation and maintenance expenses for the three and six
months ended March 31,June 30, 1994 increased primarily due to an
increaseincreases in
employee-related expenses.expenses, amortization of environmental charges
previously deferred and outage-related expenses at the Company's
nuclear generating facility. The depreciation and amortization
increaseincreases for the three and six months reflectsreflect additions to plant
in service. The increaseincreases in income tax expense for the three month comparison correspondsand
six months' comparisons correspond to the increases in income and
reflectsreflect the 1993 increase in the corporate tax rate from 34% to 35%
which was recorded in August 1993 and was retroactive to January 1,
1993.

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

The Company filed a report on Form 8-K on January 13,July 15,
1994 in response to Item 5, "Other Events" regarding
the settlement with Westinghouse Electric Corporationchange in identity of a lawsuit relatingan expert referred to in
the steam generators provided
to the Company's Summer Station.Prospectus included in Registration No. 33-
49421.

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)

MayAugust 11, 1994 By: s/Jimmy E. Addison
Jimmy E. Addison
Vice President and Controller
(Principal Accounting Officer)