PSNC Energy Files for Rate Increase to Recover Operation and Expansion Costs

GASTONIA, N.C.--(Business Wire)--
PSNC Energy, a wholly owned subsidiary of SCANA Corporation (NYSE:
SCG), filed an application today with the North Carolina Utilities
Commission requesting a general increase of approximately $20.4
million, or 2.99 percent, in annual revenue. If the request is
approved, the average year-round residential customer would see a
monthly increase of approximately $2.98.

The rate increase request is the direct result of the company's
need to recover costs related to operating and expanding its pipeline
system. Since its last rate case filing in 2006, PSNC Energy has spent
more than $188 million to upgrade and extend its gas delivery system.
The company has installed more than 900 miles of transmission and
distribution mains and added nearly 32,000 customers to its system.

"We serve one of the faster growing service territories in the
country, and we are continuing to invest in our system to meet the
needs of our customers," said PSNC Energy President and Chief
Operating Officer Rusty Harris. "We must be able to recover costs
associated with maintaining and growing our infrastructure. Doing so
is essential to our ability to continue providing safe and reliable
natural gas service to our customers."

In its rate case application, PSNC Energy is also requesting to
implement a customer usage tracker (CUT), a rate decoupling mechanism
that breaks the link between revenues and the amount of natural gas
sold. If approved, the CUT would apply to residential and commercial
customers and would allow the company to periodically adjust its base
rates based on customer consumption.

Finally, PSNC Energy is proposing several conservation initiatives
and asking the Commission to approve recovery of costs associated with
them. The company's proposed initiatives include an in-home energy
audit and weatherization program, a rebate program for customers who
replace existing natural gas appliances with more efficient natural
gas equipment, and discount rates for homes and businesses that meet
certain energy efficient standards.

"Our customers have demonstrated their interest in conservation
measures, and we want to support their efforts," said Harris.

PSNC Energy does not expect the Commission to rule on its request
until this fall.

PROFILE

PSNC Energy, headquartered in Gastonia, N.C., is franchised to
serve a 28-county service area in North Carolina. The utility
distributes natural gas to approximately 460,000 customers in 96
cities and communities, including the Raleigh, Durham, and Chapel Hill
areas in the north central part of the state; the Concord,
Statesville, Gastonia, and Forest City areas in the Piedmont; and the
Asheville, Hendersonville, Brevard, and Sylva areas in the western
part of the state. More information about PSNC Energy is available
through the company's Web site at www.psncenergy.com.

SCANA Corporation, a Fortune 500 company headquartered in
Columbia, South Carolina, is an energy-based holding company
principally engaged, through subsidiaries, in electric and natural gas
utility operations and other energy-related businesses. The company
serves approximately 639,000 electric customers in South Carolina and
more than 1.2 million natural gas customers in South Carolina, North
Carolina and Georgia. Information about SCANA and its businesses is
available on the company's Web site at www.scana.com.

SAFE HARBOR STATEMENT

Statements included in this press release which are not statements
of historical fact are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements include,
but are not limited to, statements concerning key earnings drivers,
customer growth, environmental regulations and expenditures, leverage
ratio, projections for pension fund contributions, financing
activities, access to sources of capital, impacts of the adoption of
new accounting rules, estimated construction and other expenditures
and factors affecting the availability of synthetic fuel tax credits.
In some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "should," "expects,"
"plans," "anticipates," "believes," "estimates," "projects,"
"predicts," "potential" or "continue" or the negative of these terms
or other similar terminology. 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) the information is of a preliminary nature and may be
subject to further and/or continuing review and adjustment; (2)
regulatory actions, particularly changes in rate regulation and
environmental regulations; (3) current and future litigation; (4)
changes in the economy, especially in areas served by subsidiaries of
SCANA Corporation (SCANA); (5) the impact of competition from other
energy suppliers, including competition from alternate fuels in
industrial interruptible markets; (6) growth opportunities for SCANA's
regulated and diversified subsidiaries; (7) the results of financing
efforts; (8) changes in SCANA's or its subsidiaries' accounting rules
and accounting policies; (9) the effects of weather, including
drought, especially in areas where the Company's generation and
transmission facilities are located and in areas served by SCANA's
subsidiaries; (10) payment by counterparties as and when due; (11) the
results of efforts to license, site and construct facilities for
baseload electric generation; (12) the availability of fuels such as
coal, natural gas and enriched uranium used to produce electricity;
the availability of purchased power and natural gas for distribution;
the level and volatility of future market prices for such fuels and
purchased power; and the ability to recover the costs for such fuels
and purchased power; (13) performance of SCANA's pension plan assets;
(14) inflation; (15) compliance with regulations; and (16) the other
risks and uncertainties described from time to time in the periodic
reports filed by SCANA or South Carolina Electric & Gas Company
(SCE&G) with the United States Securities and Exchange Commission
(SEC). The Company disclaims any obligation to update any
forward-looking statements.

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Public Service Company of North Carolina, Inc.
(d/b/a PSNC Energy)
Application for Retail Natural Gas Rate Increase
To The North Carolina Utilities Commission

Highlights
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Timeline:

Letter of Intent Filed: February 27, 2008
Application Filed March 31, 2008
Docket Number G-5, Sub 495
Public Hearing Summer 2008
Requested Effective Date November 1, 2008
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Test Period Data:
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Test Period 12 Months Ended Dec. 31, 2007, As
Adjusted
Retail Natural Gas Rate Base $720 Million
Return on Rate Base 7.65%
Return on Common Equity 8.82%
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Requested in Application:
Millions of $ %
Total Annual Revenue Increase $20.4 2.99%
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Return on Rate Base 9.36%
Return on Common Equity 12.00%
Total Capitalization $732 Million
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Capital Structure and Cost of Capital:

Requested March 31, 2008:

Utility Capital Cost Weighted
Structure Rate Cost
Long-Term Debt 35.89% 7.07% 2.54%
Common Equity 53.75% 12.00% 6.45%
Short-Term Debt 10.36% 3.55% 0.37%
Total 100.00% 9.36%
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SCANA Corporation
Media Contact - Gastonia/Asheville
Jodie Roberts-Smith, 704-834-6427
jroberts-smith@scana.com
or
Media Contact - Raleigh/Durham
Angie Townsend, 919-836-2321
adtownsend@scana.com
or
Investor Contact
Bryan Hatchell, 803-217-7458
bhatchell@scana.com

Copyright Business Wire 2008