The Commission and ORS annually review the costs SCE&G incurs in purchasing fuel to operate its electric generation facilities. The company is then directed to adjust base rates either upward or downward to reflect those costs. Approved fuel costs are billed as a direct pass-through to customers; SCE&G cannot, and does not, earn a profit on that portion of its rates. Fuel costs currently represent about 31 percent of what a residential customer pays for a kilowatt hour of electricity.

Under terms of the settlement agreement, residential electric rates will increase approximately 2.44 percent resulting in an overall increase in the average monthly electric bill for a residential customer using 1,000 kilowatt hours in the amount of $2.80 beginning in May 2009. The company is deferring a portion of the increase over a three year period, effectively reducing the monthly increase for customers.

"We are pleased with the decision of the Commission. With the economic challenges so many of our customers are facing today, we thought it best to spread this cost out over a longer period which, in turn, will lessen the financial impact on customers," said Kevin Marsh, president of SCE&G.

South Carolina Electric & Gas Company is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 652,000 customers in 26 counties in the central, southern and southwestern portions of South Carolina. The company also provides natural gas service to approximately 309,000 customers in 34 counties in the state. More information about SCE&G is available at www.sceg.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 Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended.