Oct. 27--SCANA Corp. said today its third quarter earnings rose 9.6 percent as the state's only Fortune 500 company benefited from a $15 million state tax refund.

But operating revenues fell 27.3 percent from a year ago to $921 million as natural gas revenue tumbled nearly 50 percent. Electric revenue was down 8.3 percent in the quarter.

The company, which last month moved its headquarters to Cayce from Columbia, did not address the reasons behind those revenue drops in its news release.

SCANA said its third-quarter earnings were $103 million, or 84 cents per share, compared to $94 million, or 80 cents per share, a year earlier.

"The improvement in third quarter results was primarily a result of resolution of a state tax issue, which will result in a refund of approximately $15 million in state income taxes plus interest," Jimmy Addison, senior vice president and chief financial officer said in statement. "The impact of this favorable decision more than offset several negative factors, including lower electric and natural gas margins, higher operations and maintenance expenses and dilution during the quarter."

SCANA got the refund after the state Supreme Court reversed itself last month and allowed the company to carryover an used investment tax credit from 1996 onto future tax returns.

SCANA also said it expects to earnings $2.80 to $2.95 per share this year, up from earlier expectations of $2.65 to $2.95 per share.

The company said it sees average annual earnings growth rate of 4 percent to 6 percent over the next three to five years.

So far this year, earnings are up 4.6 percent to $272 million.

"The year-to-date ... increase in earnings was driven primarily by lower operating and maintenance expenses and the result of resolution of a state tax issue," Addison said.

Here are the results from SCANA's subsidiaries and operations:

-S.C. Electric & Gas earnings rose 9 percent to $109 million in the third quarter because of the tax resolution. SCE&G served about 654,000 electric customers and 306,000 natural gas customers, up 0.8 and 1.2 percent, respectively over a year earlier.

-PSNC Energy, the company's North Carolina retail natural gas subsidiary, lost $4 million in the third quarter, unchanged from a year ago.

-The Carolina Gas Transmission subsidiary earnings rose 50 percent to $3 million on higher transportation revenues and lower operating costs.

-SCANA Energy, the Company's retail natural gas marketing business in Georgia, reported a loss of $3 million, or 2 cents per share, compared to break-even results a year ago as more customers opted for fixed-rate plans.

-SCANA's corporate and other businesses, which include SCANA Communications, ServiceCare, SCANA Energy Marketing and the holding company, reported a loss of $2 million versus to a loss of $4 million last year as net interest expenses fell on long-term debt.

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