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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form U-13-60

ANNUAL REPORT

For the Period
Beginning January 1, 2003 and Ending December 31, 2003

TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF

SCANA Services, Inc.
(Exact Name of Reporting Company)

A Subsidiary Service Company

Date of Incorporation: December 15, 1999

State or Sovereign Power under which Incorporated or Organized: South Carolina

Location of Principal Executive Offices of Reporting Company:

1426 Main Street
Columbia, South Carolina 29201

Name, title and address of officer to whom
correspondence concerning this report should be addressed:

James E. Swan, IV
Controller
1426 Main Street
Columbia, SC 29201

Name of Principal Holding Company Whose Subsidiaries are served by Reporting Company:

SCANA Corporation

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LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT

Description of Schedules and Accounts		Schedule or Account Number		Page Number
COMPARATIVE BALANCE SHEET		Schedule I		4
SERVICE COMPANY PROPERTY		Schedule II		6
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY		Schedule III		8
INVESTMENTS		Schedule IV		9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES		Schedule V		10
FUEL STOCK EXPENSES UNDISTRIBUTED		Schedule VI		11
STORES EXPENSE UNDISTRIBUTED		Schedule VII		12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS		Schedule VIII		13
MISCELLANEOUS DEFERRED DEBITS		Schedule IX		14
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES		Schedule X		15
PROPRIETARY CAPITAL		Schedule XI		16
LONG-TERM DEBT		Schedule XII		17
CURRENT AND ACCRUED LIABILITIES		Schedule XIII		18
NOTES TO FINANCIAL STATEMENTS		Schedule XIV		19
COMPARATIVE INCOME STATEMENT		Schedule XV		20
ANALYSIS OF BILLING—ASSOCIATE COMPANIES		Account 457		23
ANALYSIS OF BILLING—NONASSOCIATE COMPANIES		Account 458		24
ANALYSIS OF CHARGES FOR SERVICE—ASSOCIATE AND NONASSOCIATE COMPANIES		Schedule XVI		25
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION		Schedule XVII		30
DEPARTMENTAL ANALYSIS OF SALARIES		Account 920		36
OUTSIDE SERVICES EMPLOYED		Account 923		37
EMPLOYEE PENSIONS AND BENEFITS		Account 926		40
GENERAL ADVERTISING EXPENSES		Account 930.1		41
MISCELLANEOUS GENERAL EXPENSES		Account 930.2		42
RENTS		Account 931		43
TAXES OTHER THAN INCOME TAXES		Account 408		44
DONATIONS		Account 426.1		45
OTHER DEDUCTIONS		Account 426.5		47
NOTES TO STATEMENT OF INCOME		Schedule XVIII		48

2

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LISTING OF INSTRUCTIONAL FILING REQUIREMENTS

Description of Reports or Statements		Page Number
ORGANIZATION CHART		49
METHODS OF ALLOCATION		50
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED		57

3

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ANNUAL REPORT OF SCANA Services, Inc.

SCHEDULE I—COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year

						AS OF DECEMBER 31
ACCOUNT
		ASSETS AND OTHER DEBITS				CURRENT			PRIOR
						(Dollars in Thousands)
		SERVICE COMPANY PROPERTY
101		Service company property		(Schedule II)		$	48,072		$	35,282
107		Construction work in progress		(Schedule II)			4,189			14,173
		Total Property					52,261			49,455
108		Less accumulated provision for depreciation and amortization of service company property		(Schedule III)			13,714			7,997
		Net Service Company Property					38,547			41,458
		INVESTMENTS
123		Investments in associate companies		(Schedule IV)			—			—
124		Other investments		(Schedule IV)			—			—
		Total Investments					—			—
		CURRENT AND ACCRUED ASSETS
131		Cash					172			228
134		Special deposits					—			—
135		Working funds					67			102
136		Temporary cash investments		(Schedule IV)			—			—
141		Notes receivable					—			—
143		Accounts receivable					446			493
144		Accumulated provision for uncollectible accounts					—			—
146		Accounts receivable from associate companies		(Schedule V)			183,980			46,171
152		Fuel stock expenses undistributed		(Schedule VI)			—			—
154		Materials and supplies					62			63
163		Stores expense undistributed		(Schedule VII)			—			—
165		Prepayments					2,385			2,580
174		Miscellaneous current and accrued assets		(Schedule VIII)			—			—
		Total Current and Accrued Assets					187,112			49,637
		DEFERRED DEBITS
181		Unamortized debt expense					—			—
183		Preliminary survey & investigation					85			—
184		Clearing accounts					2			9
186		Miscellaneous deferred debits		(Schedule IX)			2,546			1,854
188		Research, development or demonstration expenditures		(Schedule X)			—			—
190		Accumulated deferred income taxes					—			—
		Total Deferred Debits					2,633			1,863
		TOTAL ASSETS AND OTHER DEBITS				$	228,292		$	92,958
		PROPRIETARY CAPITAL

4

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201		Common stock issued		(Schedule XI)		$	1		$	1
211		Miscellaneous paid-in-capital		(Schedule XI)			5,465			5,465
215		Appropriated retained earnings		(Schedule XI)			—			—
216		Unappropriated retained earnings		(Schedule XI)			—			—
		Total Proprietary Capital					5,466			5,466
		LONG-TERM DEBT
223		Advances from associate companies		(Schedule XII)			—			—
224		Other long-term debt		(Schedule XII)			2,456			3,274
225		Unamortized premium on long-term debt					—			—
226		Unamortized discount on long-term debt-debit					—			—
		Total Long-term Debt					2,456			3,274
		CURRENT AND ACCRUED LIABILITIES
228		Accrued provision for injuries and damages					237			193
231		Notes payable					—			—
232		Accounts payable					29,953			20,763
233		Notes payable to associate companies		(Schedule XIII)			—			—
234		Accounts payable to associate companies		(Schedule XIII)			159,625			42,630
236		Taxes accrued					445			251
237		Interest accrued					—			—
238		Dividends declared					—			—
241		Tax collections payable					152			224
242		Miscellaneous current and accrued liabilities		(Schedule XIII)			17,309			12,324
		Total Current and Accrued Liabilities					207,721			76,385
		DEFERRED CREDITS
253		Other deferred credits					7,722			3,403
255		Accumulated deferred investment tax credits					—			—
		Total Deferred Credits					7,722			3,403
282		ACCUMULATED DEFERRED INCOME TAXES					4,927			4,430
		TOTAL LIABILITIES AND PROPRIETARY CAPITAL				$	228,292		$	92,958

5

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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2003

SCHEDULE II—SERVICE COMPANY PROPERTY

		DESCRIPTION		BALANCE AT BEGINNING OF YEAR			ADDITIONS			RETIREMENT OR SALES			OTHER CHANGES(1)			BALANCE AT CLOSE OF YEAR
				(Dollars in Thousands)
		SERVICE COMPANY PROPERTY
Account
301		ORGANIZATION			—			—			—			—			—
303		MISCELLANEOUS INTANGIBLE PLANT		$	12,036		$	6,938		$	(408	)		—		$	18,566
304		LAND AND LAND RIGHTS			—			—			—			—			—
305		STRUCTURES AND IMPROVEMENTS			236			89			—			—			325
306		LEASEHOLD IMPROVEMENTS			3,328			878			—			—			4,206
307		EQUIPMENT(2)			7,258			5,255			(309	)		—			12,204
308		OFFICE FURNITURE AND EQUIPMENT			1,328			121			—			—			1,449
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT			—			—			—			—			—
310		AIRCRAFT AND AIRPORT EQUIPMENT			5,244			—			—			—			5,244
311		OTHER SERVICE COMPANY PROPERTY(3)			5,852			1,044			(818	)		—			6,078
		SUB-TOTAL			35,282			14,325			(1,535	)		—			48,072
107		CONSTRUCTION WORK IN PROGRESS(4)			14,173			8,590			(14,324	)		(4,250	)		4,189
		TOTAL		$	49,455		$	22,915		$	(15,859	)	$	(4,250	)	$	52,261

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(1)

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

Transfer of assets to other subsidiary Business Units.

6

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(2)

SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:

SUBACCOUNT DESCRIPTION			ADDITIONS			BALANCE AT CLOSE OF YEAR
			(Dollars in Thousands)
EDP Equipment			$	5,005		$	11,546
Office Data Handling Equipment				250			658
	TOTAL		$	5,255		$	12,204

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(3)

DESCRIBE OTHER SERVICE COMPANY PROPERTY:

        Capitalized computer leases of $2,455, communication equipment of $2,392 and office furniture and equipment of $1,231.

(4)

DESCRIBE CONSTRUCTION WORK IN PROGRESS:

        Primarily data processing systems

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SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY

							ADDITIONS
DESCRIPTION				BALANCE AT BEGINNING OF YEAR			CHARGED TO ACCOUNT 403			RETIREMENTS			OTHER CHANGES ADD (DEDUCT)(1)			BALANCE AT CLOSE OF YEAR
				(Dollars in Thousands)
Account
301		ORGANIZATION			—			—			—			—			—
303		MISCELLANEOUS INTANGIBLE PLANT		$	2,946		$	2,928		$	(408	)	$	283		$	5,749
304		LAND AND LAND RIGHTS			—			—			—			—			—
305		STRUCTURES AND IMPROVEMENTS			50			7			—			8			65
306		LEASEHOLD IMPROVEMENTS			761			114			—			(16	)		859
307		EQUIPMENT			3,158			2,299			(309	)		(27	)		5,121
308		OFFICE FURNITURE AND FIXTURES			446			309			—			65			820
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT			—			—			—			—			—
310		AIRCRAFT AND AIRPORT EQUIPMENT			427			315			—			—			742
311		OTHER SERVICE COMPANY PROPERTY			209			194			—			(45	)		358
		TOTAL		$	7,997		$	6,166		$	(717	)	$	268		$	13,714

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(1)

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

        N/A

8

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SCHEDULE IV—INVESTMENTS

INSTRUCTIONS:		Complete the following schedule concerning investments. Under Account 124, "Other Investments", state each investment separately, with description, including, the the name of issuing company, number of shares or principal amount, etc.
		Under Account 136, "Temporary Cash Investments", list each investment separately.

DESCRIPTION			BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
			(Dollars in Thousands)
ACCOUNT 123—INVESTMENT IN ASSOCIATE COMPANIES			$	—		$	—
ACCOUNT 124—OTHER INVESTMENTS				—			—
ACCOUNT 136—TEMPORARY CASH INVESTMENTS				—			—
	TOTAL		$	—		$	—

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SCHEDULE V—ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES

INSTRUCTIONS:

Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided.

DESCRIPTION				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
				(Dollars in Thousands)
ACCOUNT 146—ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES(1)
	South Carolina Generating Company, Inc.				—		$	47,724
	SCG Pipeline, Inc.				—			260
	ServiceCare, Inc.			$	534			(2,047	)
	SCANA Energy Marketing, Inc.				3,623			89,542
	Primesouth Inc.				300			1,083
	SCANA Development Corporation				8			2
	South Carolina Pipeline Corporation				1,577			12,293
	SCANA Communications, Inc.				254			(25	)
	SCANA Resources, Inc.				—			(84	)
	Public Service Company of North Carolina, Incorporated				7,690			2,915
	South Carolina Electric & Gas Company				32,185			32,267
		TOTAL		$	46,171		$	183,980

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(1)

Balances at close of year include money pool borrowings.

				TOTAL PAYMENTS
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
	South Carolina Pipeline Corporation			$	12
	ServiceCare, Inc.				4
	SCANA Communications, Inc.				6
	SCANA Energy Marketing, Inc.				115
		TOTAL PAYMENTS		$	137

10

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SCHEDULE VI—FUEL STOCK EXPENSES UNDISTRIBUTED

INSTRUCTIONS:

Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company.

DESCRIPTION			LABOR			EXPENSES			TOTAL
			(Dollars in Thousands)
ACCOUNT 152—FUEL STOCK EXPENSES UNDISTRIBUTED			$	—		$	—		$	—
	TOTAL		$	—		$	—		$	—

SUMMARY:

11

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SCHEDULE VII—STORES EXPENSE UNDISTRIBUTED

INSTRUCTIONS:

Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company.

DESCRIPTION			LABOR			EXPENSES			TOTAL
			(Dollars in Thousands)
ACCOUNT 163—STORES EXPENSE UNDISTRIBUTED			$	—		$	—		$	—
	TOTAL		$	—		$	—		$	—

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SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS

INSTRUCTIONS:

Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.

DESCRIPTION			BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
			(Dollars in Thousands)
ACCOUNT 174—MISCELLANEOUS CURRENT AND ACCRUED ASSETS			$	—		$	—
	TOTAL		$	—		$	—

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SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS

INSTRUCTIONS:

Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class.

DESCRIPTION				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
				(Dollars in Thousands)
ACCOUNT 186—MISCELLANEOUS DEFERRED DEBITS
	Other work in progress			$	795		$	604
	Prepaid software				1,110			564
	Unbilled clearing				(51	)		38
	Real estate purchased in connection with employee relocations				—			1,289
	Pht claims				—			45
	Other (1 item)				—			6
		TOTAL		$	1,854		$	2,546

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SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES

INSTRUCTIONS:

Provide a description of each material research, development, or demonstration project which incurred costs by the service corporation during the year.

DESCRIPTION			AMOUNT
			(Dollars in Thousands)
ACCOUNT 188—RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES			$	—
	TOTAL		$	—

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SCHEDULE XI—PROPRIETARY CAPITAL

								OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER		CLASS OF STOCK		NUMBER OF SHARES AUTHORIZED		PAR OR STATED VALUE PER SHARE		NO. OF SHARES		TOTAL AMOUNT
201		COMMON STOCK ISSUED		1,000		No Par		1,000		$	1,000

INSTRUCTIONS:

Classify amounts in each account with brief explanation, disclosing the general nature of transactions which gave rise to the reported amounts.

DESCRIPTION			AMOUNT
			(Dollars in Thousands)
ACCOUNT 211—MISCELLANEOUS PAID-IN CAPITAL Capitalization of company			$	5,465
ACCOUNT 215—APPROPRIATED RETAINED EARNINGS				—
	TOTAL		$	5,465

INSTRUCTIONS:

Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid.

DESCRIPTION			BALANCE AT BEGINNING OF YEAR			NET INCOME OR (LOSS)			DIVIDENDS PAID			BALANCE AT CLOSE OF YEAR
ACCOUNT 216—UNAPPROPRIATED RETAINED EARNINGS
	TOTAL		$	—		$	—		$	—		$	—

16

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SCHEDULE XII—LONG-TERM DEBT

INSTRUCTIONS:

Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224—Other long-term debt provide the name of the creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.

NAME OF CREDITOR	TERMS OF OBLIG CLASS & SERIES OF OBLIGATION		DATE OF MATURITY		INTEREST RATE		AMOUNT AUTHORIZED		BALANCE AT BEGINNING OF YEAR			ADDITIONS			DEDUCTIONS(1)			BALANCE AT CLOSE OF YEAR
			(Dollars in Thousands)
ACCOUNT 223—ADVANCES FROM ASSOCIATE COMPANIES:			—		—		—			—			—			—			—
ACCOUNT 224—OTHER LONG-TERM DEBT:
O/E Systems, Inc.	master lease of computer equipment		from 6 to 36 months		ranging from 2.7% to 3.1%		—		$	3,274		$	1,191		$	2,009		$	2,456
	TOTAL								$	3,274		$	1,191		$	2,009		$	2,456

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(1)

GIVE AN EXPLANATION OF DEDUCTIONS:

Amortization of capital lease obligations in accordance with the capital lease accounting instructions prescribed in the Federal Energy Regulatory Commission Uniform System of Accounts.

17

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SCHEDULE XIII—CURRENT AND ACCRUED LIABILITIES

INSTRUCTIONS:

Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group.

DESCRIPTION				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
				(Dollars in Thousands)
ACCOUNT 233—NOTES PAYABLE TO ASSOCIATE COMPANIES
		TOTAL		$	—		$	—
ACCOUNT 234—ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES(1)
	SCANA Corporation			$	42,630		$	112,312
	South Carolina Electric & Gas Company				—			47,500
	SCANA Energy Marketing, Inc.							2
	SCANA Communications, Inc.							(189	)
		TOTAL		$	42,630		$	159,625
ACCOUNT 242—MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
	Accrued payroll			$	2,747		$	2,942
	Employee/officer incentives				9,577			14,367
		TOTAL		$	12,324		$	17,309

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(1)

Balances at close of year include money pool borrowings.

18

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SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS

INSTRUCTIONS:

The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.

1.

SCANA Services, Inc. was established to provide certain administrative and service functions for the SCANA system companies. Initial capitalization was provided by SCANA Corporation through the purchase of SCANA Services, Inc.'s common stock and the transfer of certain assets from SCANA system companies to SCANA Services, Inc.

2.

The financial statements are presented using the accrual method of accounting.

3.

Provisions for depreciation and amortization are recorded using the straight-line method and are based on the estimated service lives of the various classes of property.

4.

In 2003, balances representing interest bearing investments in and borrowings from the nonutility money pool were transferred to SCANA Services, Inc.

5.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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SCHEDULE XV
STATEMENT OF INCOME

ACCOUNT		DESCRIPTION		CURRENT YEAR			PRIOR YEAR
				(Dollars in Thousands)
		INCOME
415		Revenue from merchandise		$	0		$	8
417.0		Other nonutility revenue			917			3,381
418.0		Non operating rent			39			281
419.0		Interest & dividends			2			8
419.1		AFUDC			0			0
421		Miscellaneous income or loss			5,311			3,210
447		Sales for Resale Utilities & Public Authorities			30			0
454		Rent from electric property			215			220
456		Other electric revenue			288			255
457		Services rendered to associate companies			224,331			233,973
493		Rent from gas property			31			75
		Total Income			231,164			241,411
		EXPENSE
350		Superintendence operations			3			16
351		Superintendence maint			0			9
370		Administrative and general			0			3
408		Taxes other than income taxes			6,813			7,710
409		Income taxes			(498	)		(2,713	)
410		Provision for deferred income taxes			498			2,713
414		Depreciation and amortization expense			5,345			4,824
416		Expense from merchandise			924			1,796
417.1		Other nonutility expenses			1,766			3,736
426.1		Donations			1,694			1,618
426.2		Life insurance			(1,031	)		(2,961	)
426.3		Penalties			0			6
426.4		Civic, politic and related accounts			1,178			1,219
426.5		Other deductions			4,879			3,904
430		Interest on debt to associate companies			1,902			2,990
431		Other interest expense			0			555
432		AFUDC			28			(386	)
500		Operation supervision and engineering steam			4			4
502		Operation steam power			0			1
506		Operation misc steam			789			876
510		Maint supervision and engineering			50			40
511		Maint structures steam			9			0
512		Maint boiler plant steam			1			7
513		Maint electric plant steam			3			3
514		Maint Misc steam plant			2			19
517		Operation supervision and engineering nuclear			412			246
519		Operation coolants and water			39			36
520		Operation steam expenses nuclear			156			233
524		Operation misc nuclear			2,441			2,549
528		Maint Supervision and engineering Nuclear			89			0
529		Maint structures Nuclear Power			8			0

20

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532		Maint misc nuclear			438			194
535		Operation supervision and engineering Hydro			7			0
537		Operation expenses hydro			26			26
539		Operation misc hydraulic pwr gen			96			86
543		Maint reservoirs dams			0			1
544		Maint electric plant hydro			3			142
545		Maint misc hydro plant			1			7
546		Operation supervision and engineering			5			9
549		Operation misc other power generation			28			25
556		System control and load			126			121
560		Operation supervision and engineering			2			5
561		Operation load dispatching transmission			25			29
562		Operation station expenses transmission			62			85
563		Operation OH line expenses transmission			0			1
566		Operation misc transmission			375			364
567		Oper rents Transmission			192			186
568		Maint supervision and engineering			12			8
569		Maint structures transmission			42			36
570		Maint station equipment transmission			184			161
571		Maint overhead lines transmission			47			2
573		Maint misc transmission			43			34
580		Distribution operation supervision and engineering			9			8
581		Distribution operation load dispatch			1			1
582		Distribution operation station expenses			68			100
583		Distribution operation remove and reset			2			1
585		Distribution operation street light and sign			6			9
586		Distribution operation meter expenses			7			12
588		Distribution operation misc distribution			1,073			1,087
592		Distribution maint of station equipment			53			55
593		Distribution maint of OH Lines			102			204
594		Distribution maint underground lines			32			30
596		Distribution maint street light and signal			28			17
597		Distribution maint meters			4			1
598		Distribution maint misc distribution plant			4			1
717		Operation liquid petroleum gas			0			3
735		Environmental amortization and misc			94			168
851		System control and load dispatch			300			252
853		Compressor station labor and expenses			3			0
856		Mains expense			4			0
857		Meas and reg station			7			0
870		Supervision and engineering natural gas distribution			2			1
874		Mains and services natural gas distribution			97			6
878		Meter and house regulator			6			8
879		Customer installation			5			1
880		Other expenses natural gas			369			349
887		Maint mains natural gas distribution			1			0
893		Maint meters/house regtr natural gas distribution			8			12
901		Supervision customer accounting			1,275			2,517
902		Meter reading			2,232			1,021

21

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903		Customer records and collections			28,639			36,797
904		Uncollectible Customer Accounts			50			0
905		Miscellaneous customer accounts			1,487			1,433
907		Supervision customer service			310			292
908		Customer assistance			1,560			1,536
909		Informational and instructional advertising			10			37
910		Miscellaneous customer service			45			270
911		Supervision sales activities			644			699
912		Demonstrating and selling			6,256			5,502
913		Advertising			26			105
916		Miscellaneous sales			970			640
920		Salaries and wages *			53,465			51,301
921		Office supplies and expenses			43,777			46,834
923		Outside services employed			25,139			22,449
924		A&G Property Insurance			3			0
925		Injuries and damages			2,192			2,419
926		Employee pensions and benefits			15,090			15,827
927		A&G Franchise Requirements			3			0
928		Regulatory commission expense			337			1,499
930.1		General advertising expenses			382			611
930.2		Miscellaneous general expenses			6,330			7,284
931		Rents			6,775			6,520
935		Maintenance of general plant			2,664			2,917
		Total Expense			231,164			241,411
		Net Income or (Loss)		$	0		$	0

---

*

Salary and wage amounts are charged to Account 920 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts.

22

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ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457

			DIRECT COSTS CHARGED			INDIRECT COSTS CHARGED			COMPENSATION FOR USE OF CAPITAL
NAME OF ASSOCIATE COMPANY											TOTAL AMOUNT BILLED
			457-1			457-2			457-3
			(Dollars in Thousands)
South Carolina Electric & Gas Company			$	119,220		$	37,787				$	157,007
South Carolina Fuel Company, Inc.				110			0					110
South Carolina Pipeline Corporation				7,404			3,569					10,973
Public Service Company of North Carolina,				17,120			7,429					24,549
Incorporated												0
SCANA Communications, Inc.				1,122			206					1,328
SCANA Energy Marketing, Inc.				18,064			5,319					23,383
ServiceCare, Inc.				897			364					1,261
SCANA Resources, Inc.				1			0					1
SCANA Development Corporation				36			0					36
SCANA Petroleum Resources, Inc.				4			0					4
South Carolina Generating Company, Inc.				677			1,441					2,118
Primesouth Inc.				1,983			945					2,928
SCANA Holding				173			460					633
	TOTAL		$	166,811		$	57,520				$	224,331

23

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ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458

			DIRECT COST CHARGED			INDIRECT COST CHARGED			COMPENSATION FOR USE OF CAPITAL						EXCESS OR DEFICIENCY
NAME OF NONASSOCIATE COMPANY												TOTAL COST						TOTAL AMOUNT BILLED
			458-1			458-2			458-3						458-4
	TOTAL		$	—		$	—		$	—		$	—		$	—		$	—

INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company.

24

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SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES

				ASSOCIATE COMPANY CHARGES									NONASSOCIATE COMPANY CHARGES						TOTAL CHARGES FOR SERVICE
DESCRIPTION OF ITEMS				DIRECT COST			INDIRECT COST			TOTAL			DIRECT COST		INDIRECT COST		TOTAL		DIRECT COST			INDIRECT COST			TOTAL
				(Dollars in Thousands)
350		SUPERINTENDENCE OPERATIONS		$	3		$	0		$	3		0		0		0		$	3		$	0		$	3
408		TAXES OTHER THAN INCOME TAXES			3,991			2,822			6,813		0		0		0			3,991			2,822			6,813
414		DEPRECIATION AND AMORTIZATION EXPENSE			—			5,345			5,345		0		0		0			—			5,345			5,345
416		EXPENSES FROM MERCHANDISE			700			224			924		0		0		0			700			224			924
417.1		OTHER NONUTILITY EXPENSES			1,540			226			1,766		0		0		0			1,540			226			1,766
426.1		DONATIONS			367			1,327			1,694		0		0		0			367			1,327			1,694
426.2		LIFE INSURANCE			(1,031	)		0			(1,031	)	0		0		0			(1,031	)		0			(1,031	)
426.4		CIVIC, POLITIC AND RELATED ACCOUNTS			995			183			1,178		0		0		0			995			183			1,178
426.5		OTHER DEDUCTIONS			2,375			2,504			4,879		0		0		0			2,375			2,504			4,879
432		ALLOW FUNDS USED DURING CONST			0			28			28		0		0		0			0			28			28
500		OPERATION SUPERVISION AND ENGINEERING STEAM			4			0			4		0		0		0			4			0			4
506		OPERATION MISC STEAM			789			0			789		0		0		0			789			0			789
510		MAINT SUPERVISION AND ENGINEERING			50			0			50		0		0		0			50			0			50
511		MAINTENANCE STRUCTURES STEAM			9			0			9		0		0		0			9			0			9
512		MAINT BOILER PLANT STEAM			1			0			1		0		0		0			1			0			1
513		MAINT ELECTRIC PLANT STEAM			3			0			3		0		0		0			3			0			3
514		MAINTENANCE MISC STEAM POWER EXPENSES			2			0			2		0		0		0			2			0			2
517		OPERATION SUPERVISION AND ENGINEERING NUCLEAR			412			0			412		0		0		0			412			0			412
519		OPERATION COOLANTS AND WATER			39			0			39		0		0		0			39			0			39
520		OPERATION STEAM EXPENSES NUCLEAR			156			0			156		0		0		0			156			0			156
524		OPERATION MISC NUCLEAR			2,441			0			2,441		0		0		0			2,441			0			2,441
528		MAINTENANCE SUPERVISION AND ENGINEERING NUCLEAR			89			0			89		0		0		0			89			0			89

25

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529		MAINTENANCE STRUCTURES NUCLEAR POWER			8			0			8		0		0		0			8			0			8
532		MAINT MISC NUCLEAR			438			0			438		0		0		0			438			0			438
535		OPERATION SUPERVISION AND ENGINEERING HYDRO			7			0			7		0		0		0			7			0			7
537		OPERATION EXPENSES HYDRO			26			0			26		0		0		0			26			0			26
539		OPERATION MISC HYDRAULIC PWR GEN			96			0			96		0		0		0			96			0			96
544		MAINT ELECTRIC PLANT HYDRO			3			0			3		0		0		0			3			0			3
545		MAINT MISC HYDRO POWER			1			0			1		0		0		0			1			0			1
546		OPERATION SUPERVISION AND ENGINEERING			5			0			5		0		0		0			5			0			5
549		OPERATION MISC OTHER POWER GENERATION			28			0			28		0		0		0			28			0			28
556		SYSTEM CONTROL AND LOAD			126			0			126		0		0		0			126			0			126
560		OPERATION SUPERVISION AND ENGINEERING			2			0			2		0		0		0			2			0			2
561		OPERATION LOAD DISPATCHING TRANSMISSION			25			0			25		0		0		0			25			0			25
562		OPERATION STATION EXPENSES TRANSMISSION			62			0			62		0		0		0			62			0			62
566		OPERATION MISC TRANSMISSION			375			0			375		0		0		0			375			0			375
567		OPER RENTS TRANS			192			0			192		0		0		0			192			0			192
568		MAINT SUPERVISION AND ENGINEERING			12			0			12		0		0		0			12			0			12
569		MAINT STRUCTURES TRANSMISSION			42			0			42		0		0		0			42			0			42
570		MAINT STATION EQUIPMENT TRANSMISSION			184			0			184		0		0		0			184			0			184
571		MAINT OVERHEAD LINES TRANSMISSION			47			0			47		0		0		0			47			0			47
573		MAINT MISC TRANSMISSION			43			0			43		0		0		0			43			0			43
580		DISTRIBUTION OPER SUPERVISION AND ENGINEERING			9			0			9		0		0		0			9			0			9
581		DISTRIBUTION OPER LOAD DISPATCH			1			0			1		0		0		0			1			0			1
582		DISTRIBUTION OPER STATION EXPENSES			68			0			68		0		0		0			68			0			68

26

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583		DISTRIBUTION OPER REMOVE AND RESET			2			0			2		0		0		0			2			0			2
585		DISTRIBUTION OPER STREET LIGHT AND SIGNAL			6			0			6		0		0		0			6			0			6
586		DISTRIBUTION OPER METER EXPENSES			7			0			7		0		0		0			7			0			7
588		DISTRIBUTION OPER MISC DISTRIBUTION			1,073			0			1,073		0		0		0			1,073			0			1,073
592		DISTRIBUTION MAINT OF STATION EQUIPMENT			53			0			53		0		0		0			53			0			53
593		DISTRIBUTION MAINT OF OH LINES			102			0			102		0		0		0			102			0			102
594		DISTRIBUTION MAINT UNDERGROUND LINES			32			0			32		0		0		0			32			0			32
596		DISTRIBUTION MAINT STREET LIGHT AND SIGNAL			28			0			28		0		0		0			28			0			28
597		DISTRIBUTION MAINTENANCE METERS			4			0			4		0		0		0			4			0			4
598		DISTRIBUTION MAINT MISC DISTRIBUTION PLANT			4			0			4		0		0		0			4			0			4
735		ENVIRONMENTAL AMORTIZATION AND MISC			94			0			94		0		0		0			94			0			94
851		SYSTEM CONTROL AND LOAD DISPATCH			300			0			300		0		0		0			300			0			300
853		COMPRESSION STATION LABOR & EXPENSES			3			0			3		0		0		0			3			0			3
856		MAINS EXPENSE			4			0			4		0		0		0			4			0			4
857		MEAS AND REG STATION			7			0			7		0		0		0			7			0			7
870		SUPERVISION AND ENGINEERING NAT URAL GAS DISTRIBUTION			2			0			2		0		0		0			2			0			2
874		MAINS AND SERVICE NATURAL GAS DISTRIBUTION			97			0			97		0		0		0			97			0			97
878		METER AND HOUSE REGULATOR			6			0			6		0		0		0			6			0			6
879		CUSTOMER INSTALLATION			5			0			5		0		0		0			5			0			5
880		OTHER EXPENSES NATURAL GAS			369			0			369		0		0		0			369			0			369
887		MAINT MAINS NATURAL GAS DISTRIBUTION			1			0			1		0		0		0			1			0			1
893		MAINT METERS/HOUSE REGTR NG DIS			8			0			8		0		0		0			8			0			8

27

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901		SUPERVISION CUSTOMER ACCOUNTING			1,275			0			1,275		0		0		0			1,275			0			1,275
902		METER READING			1,084			1,148			2,232		0		0		0			1,084			1,148			2,232
903		CUSTOMER RECORDS AND COLLECTIONS			28,629			10			28,639		0		0		0			28,629			10			28,639
904		UNCOLLECTIBLE CUSTOMER ACCOUNTS			50			0			50		0		0		0			50			0			50
905		MISCELLANEOUS CUSTOMER ACCOUNTS			1,481			6			1,487		0		0		0			1,481			6			1,487
907		SUPERVISION CUSTOMER SERVICE			309			1			310		0		0		0			309			1			310
908		CUSTOMER ASSISTANCE			1,560			0			1,560		0		0		0			1,560			0			1,560
909		INFORMATIONAL AND INSTRUCTIONAL ADVERTISING			10			0			10		0		0		0			10			0			10
910		MISCELLANEOUS CUSTOMER SERVICE			45			0			45		0		0		0			45			0			45
911		SUPERVISION SALES ACTIVITIES			644			0			644		0		0		0			644			0			644
912		DEMONSTRATING AND SELLING			6,068			188			6,256		0		0		0			6,068			188			6,256
913		ADVERTISING			26			0			26		0		0		0			26			0			26
916		MISCELLANEOUS SALES			123			847			970		0		0		0			123			847			970
920		SALARIES AND WAGES			39,732			13,733			53,465		0		0		0			39,732			13,733			53,465
921		OFFICE SUPPLIES AND EXPENSES			32,725			11,052			43,777		0		0		0			32,725			11,052			43,777
923		OUTSIDE SERVICES EMPLOYED			18,921			6,218			25,139		0		0		0			18,921			6,218			25,139
924		A&G PROPERTY INSURANCE			0			3			3		0		0		0			0			3			3
925		INJURIES AND DAMAGES			2,020			172			2,192		0		0		0			2,020			172			2,192
926		EMPLOYEE PENSIONS AND BENEFITS			10,826			4,264			15,090		0		0		0			10,826			4,264			15,090
927		A&G FRANCHISE REQUIREMENTS			0			3			3		0		0		0			0			3			3
928		REGULATORY COMMISSION EXPENSE			336			1			337		0		0		0			336			1			337
930.1		GENERAL ADVERTISING EXPENSES			286			96			382		0		0		0			286			96			382
930.2		MISCELLANEOUS GENERAL EXPENSES			3,592			2,738			6,330		0		0		0			3,592			2,738			6,330
931		RENTS			2,395			4,380			6,775		0		0		0			2,395			4,380			6,775
935		MAINTENANCE OF GENERAL PLANT			2,784			(120	)		2,664		0		0		0			2,784			(120	)		2,664
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.

28

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		TOTAL EXPENSES =			171,863			57,399			229,262		0		0		0			171,863			57,399			229,262
		COMPENSATION FOR USE OF EQUITY CAPITAL =
430		INTEREST ON DEBT TO ASSOCIATE COMPANIES =						1,902			1.902		0		0		0						1,902			1.902
		TOTAL COST OF SERVICE =		$	171,863		$	59,301		$	231,164		0		0		0		$	171,863		$	59,301		$	231,164

29

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SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION

							DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS				TOTAL AMOUNT			CUSTOMER SERVICES			EMPLOYEE SERVICES			ENVIRON- MENTAL			EXECUTIVE SERVICES			FINANCIAL SERVICES			GAS SUPPLY			INFORMATION SERVICES			INVESTOR REALTIONS			LAND & FACL MGMT
				(Dollars in Thousands)
350		SUPERINTENDENCE OPERATIONS		$	3
408		TAXES OTHER THAN INCOME TAXES			6,813														$	1,661
414		DEPRECIATION AND AMORTIZATION EXPENSE			5,345															5,190					$	155
416		EXPENSES FROM MERCHANDISE			924		$	(3	)	$	52			—		$	22			42		$	1			19		$	7		$	2
417.1		OTHER NONUTILITY EXPENSES			1,766			1					$	4			61			19						(118	)					213
426.1		DONATIONS			1,694			3			1			—			1			2						13						2
426.2		LIFE INSURANCE			(1,031	)														(1,031	)
426.4		CIVIC, POLITIC AND RELATED ACCOUNTS			1,178						—															1
426.5		OTHER DEDUCTIONS			4,879			—			177			33			561			1,487			5			210			45			449
4300		INTEREST ON DEBT TO ASSOC CO			1,902															1,902
432		ALLOW FUNDS USED DURING CONST			28															28												—
500		OPERATION SUPERVISION AND ENGINEERING STEAM			4									4
506		OPERATION MISC STEAM			789						—			13												(34	)
510		MAINT SUPERVISION AND ENGINEERING			50
511		MAINTENANCE STRUCTURES STEAM			9
512		MAINT BOILER PLANT STEAM			1			—
513		MAINT ELECTRIC PLANT STEAM			3
514		MAINTENANCE MISC STEAM POWER EXPENSES			2
517		OPERATION SUPERVISION AND ENGINEERING NUCLEAR			412															(5	)					(3	)
519		OPERATION COOLANTS AND WATER			39																					12
520		OPERATION STEAM EXPENSES NUCLEAR			156																					12
524		OPERATION MISC NUCLEAR			2,441						2			1						(14	)					1,109						4
528		MAINTENANCE SUPERVISION AND ENGINEERING NUCLEAR			89
529		MAINTENANCE STRUCTURES NUCLEAR POWER			8
532		MAINT MISC NUCLEAR			438															(4	)					163
535		OPERATION SUPERVISION AND ENGINEERING HYDRO			7
537		OPERATION EXPENSES HYDRO			26																											12
539		OPERATION MISC HYDRAULIC PWR GEN			96
544		MAINT ELECTRIC PLANT HYDRO			3
545		MAINT MISC HYDRO POWER			1
546		OPERATION SUPERVISION AND ENGINEERING			5
549		OPERATION MISC OTHER POWER GENERATION			28						1			1
556		SYSTEM CONTROL AND LOAD			126						2									43						2
560		OPERATION SUPERVISION AND ENGINEERING			2						—															2
561		OPERATION LOAD DISPATCHING TRANSMISSION			25																					2
562		OPERATION STATION EXPENSES TRANSMISSION			62																					62
566		OPERATION MISC TRANSMISSION			375															9						3						1
567		OPER RENTS TRANS			192
568		MAINT SUPERVISION AND ENGINEERING			12																					1
569		MAINT STRUCTURES TRANSMISSION			42

30

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570		MAINT STATION EQUIPMENT TRANSMISSION			184																					—
571		MAINT OVERHEAD LINES TRANSMISSION			47																					40
573		MAINT MISC TRANSMISSION			43																					43
580		DISTRIBUTION OPER SUPERVISION AND ENGINEERING			9
581		DISTRIBUTION OPER LOAD DISPATCH			1																					—
582		DISTRIBUTION OPER STATION EXPENSES			68																					58
583		DISTRIBUTION OPER REMOVE AND RESET			2
585		DISTRIBUTION OPER STREET LIGHT AND SIGNAL			6
586		DISTRIBUTION OPER METER EXPENSES			7															(2	)					6
588		DISTRIBUTION OPER MISC DISTRIBUTION			1,073						—			—			—			(13	)					645
592		DISTRIBUTION MAINT OF STATION EQUIPMENT			53
593		DISTRIBUTION MAINT OF OH LINES			102			41												—						32
594		DISTRIBUTION MAINT UNDERGROUND LINES			32																					32
596		DISTRIBUTION MAINT STREET LIGHT AND SIGNAL			28
597		DISTRIBUTION MAINTENANCE METERS			4
598		DISTRIBUTION MAINT MISC DISTRIBUTION PLANT			4
735		ENVIRONMENTAL AMORTIZATION AND MISC			94									1,660						(1,566	)
851		SYSTEM CONTROL AND LOAD DISPATCH			300																		291			9
853		COMPRESSION STATION LABOR & EXPENSES			3																					1
856		MAINS EXPENSE			4									—						1						3
857		MEAS AND REG STATION			7															4						3
870		SUPERVISION AND ENGINEERING NAT GAS DIST			2
874		MAINS AND SERVICE NATURAL GAS DISTRIBUTION			97															—						92
878		METER AND HOUSE REGULATOR			6															—						5
879		CUSTOMER INSTALLATION			5
880		OTHER EXPENSES NATURAL GAS			369			—												4
887		MAINT MAINS NATURAL GAS DISTRIBUTION			1
893		MAINT METERS/HOUSE REGTR NG DIS			8
901		SUPERVISION CUSTOMER ACCOUNTING			1,275			1,135																		(26	)					1
902		METER READING			2,232			41												186						1,885						—
903		CUSTOMER RECORDS AND COLLECTIONS			28,639			13,694			108									103						13,800						13
904		UNCOLLECTIBLE CUSTOMER ACCOUNTS			50
905		MISCELLANEOUS CUSTOMER ACCOUNTS			1,487			1,234			—			—						6						12
907		SUPERVISION CUSTOMER SERVICE			310			1									—			21						71						22
908		CUSTOMER ASSISTANCE			1,560			20									509			—						4
909		INFORMATIONAL AND INSTRUCTIONAL ADVERTISING			10
910		MISCELLANEOUS CUSTOMER SERVICE			45			14						—						—						—
911		SUPERVISION SALES ACTIVITIES			644			—															—			15
912		DEMONSTRATING AND SELLING			6,256			—			2									—						133
913		ADVERTISING			26
916		MISCELLANEOUS SALES			970																					959

31

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920		SALARIES AND WAGES			53,465			101			4,640			799			2,810			25,803			1,331			445			553			1,578
921		OFFICE SUPPLIES AND EXPENSES			43,777			295			1,939			654			1,214			5,737			352			16,673			207			1,488
923		OUTSIDE SERVICES EMPLOYED			25,139			4			2,653			1,111			157			3,343			(17	)		12			23			6,670
924		A&G PROPERTY INSURANCE			3															3
925		INJURIES AND DAMAGES			2,192															—												—
926		EMPLOYEE PENSIONS AND BENEFITS			15,090
927		A&G FRANCHISE REQUIREMENTS			3															—
928		REGULATORY COMMISSION EXPENSE			337									—			1			26
930.1		GENERAL ADVERTISING EXPENSES			382						7			—			—			1			—			—			—			—
930.2		MISCELLANEOUS GENERAL EXPENSES			6,330			5			28			1			1,007			55			—			1,198			458			2
931		RENTS			6,775			186			756			179			1,255			1,007			153			250			2			382
935		MAINTENANCE OF GENERAL PLANT			2,664			25			1			381						(221	)					1,045						1,017
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account)
		TOTAL EXPENSES =		$	231,164		$	16,797		$	10,369		$	4,841		$	7,598		$	43,827		$	2,116		$	39,056		$	1,295		$	11,856

32

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SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION

							DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS				TOTAL AMOUNT			LEGAL			MARKETING & SALES			OPERATIONAL SUPPORT			OVERHEAD			PROCUREMENT			PUBLIC AFFAIRS			REGULATORY			STRATEGIC PLANNING
				(Dollars in Thousands)
350		SUPERINTENDENCE OPERATIONS		$	3								$	3
408		TAXES OTHER THAN INCOME TAXES			6,813											$	5,152
414		DEPRECIATION AND AMORTIZATION EXPENSE			5,345
416		EXPENSES FROM MERCHANDISE			924		$	49		$	558			158					$	(17	)	$	23		$	1		$	10
417.1		OTHER NONUTILITY EXPENSES			1,766			(90	)		1,617									1			39						1
426.1		DONATIONS			1,694			—			23			2						—			1,647			—			—
426.2		LIFE INSURANCE			(1,031	)
426.4		CIVIC, POLITIC AND RELATED ACCOUNTS			1,178																		1,177
426.5		OTHER DEDUCTIONS			4,879			463			886			63						23			449			2			26
4300		INTEREST ON DEBT TO ASSOC CO			1,902
432		ALLOW FUNDS USED DURING CONST			28
500		OPERATION SUPERVISION AND ENGINEERING STEAM			4						—			—
506		OPERATION MISC STEAM			789									810
510		MAINT SUPERVISION AND ENGINEERING			50																								50
511		MAINTENANCE STRUCTURES STEAM			9									9
512		MAINT BOILER PLANT STEAM			1									1
513		MAINT ELECTRIC PLANT STEAM			3									3
514		MAINTENANCE MISC STEAM POWER EXPENSES			2									2
517		OPERATION SUPERVISION AND ENGINEERING NUCLEAR			412						2			418						—
519		OPERATION COOLANTS AND WATER			39									27
520		OPERATION STEAM EXPENSES NUCLEAR			156									144
524		OPERATION MISC NUCLEAR			2,441			14						1,324						1
528		MAINTENANCE SUPERVISION AND ENGINEERING NUCLEAR			89									89
529		MAINTENANCE STRUCTURES NUCLEAR POWER			8									8
532		MAINT MISC NUCLEAR			438									279
535		OPERATION SUPERVISION AND ENGINEERING HYDRO			7									4						3
537		OPERATION EXPENSES HYDRO			26									14
539		OPERATION MISC HYDRAULIC PWR GEN			96									96
544		MAINT ELECTRIC PLANT HYDRO			3									3
545		MAINT MISC HYDRO POWER			1									1
546		OPERATION SUPERVISION AND ENGINEERING			5									5
549		OPERATION MISC OTHER POWER GENERATION			28									26
556		SYSTEM CONTROL AND LOAD			126									79
560		OPERATION SUPERVISION AND ENGINEERING			2									—
561		OPERATION LOAD DISPATCHING TRANSMISSION			25									23
562		OPERATION STATION EXPENSES TRANSMISSION			62									—

33

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566		OPERATION MISC TRANSMISSION			375									362
567		OPER RENTS TRANS			192						192
568		MAINT SUPERVISION AND ENGINEERING			12									11
569		MAINT STRUCTURES TRANSMISSION			42									42
570		MAINT STATION EQUIPMENT TRANSMISSION			184									184
571		MAINT OVERHEAD LINES TRANSMISSION			47									7
573		MAINT MISC TRANSMISSION			43
580		DISTRIBUTION OPER SUPERVISION AND ENGINEERING			9									9
581		DISTRIBUTION OPER LOAD DISPATCH			1									1
582		DISTRIBUTION OPER STATION EXPENSES			68									10
583		DISTRIBUTION OPER REMOVE AND RESET			2									2
585		DISTRIBUTION OPER STREET LIGHT AND SIGNAL			6									6
586		DISTRIBUTION OPER METER EXPENSES			7									3
588		DISTRIBUTION OPER MISC DISTRIBUTION			1,073			—						441									—			—			—
592		DISTRIBUTION MAINT OF STATION EQUIPMENT			53									53
593		DISTRIBUTION MAINT OF OH LINES			102									29
594		DISTRIBUTION MAINT UNDERGROUND LINES			32									—
596		DISTRIBUTION MAINT STREET LIGHT AND SIGNAL			28									28
597		DISTRIBUTION MAINTENANCE METERS			4									4
598		DISTRIBUTION MAINT MISC DISTRIBUTION PLANT			4									4
735		ENVIRONMENTAL AMORTIZATION AND MISC			94
851		SYSTEM CONTROL AND LOAD DISPATCH			300									—
853		COMPRESSION STATION LABOR & EXPENSES			3									2
856		MAINS EXPENSE			4
857		MEAS AND REG STATION			7
870		SUPERVISION AND ENGINEERING NAT GAS DIST			2									2
874		MAINS AND SERVICE NATURAL GAS DISTRIBUTION			97			—			—			5
878		METER AND HOUSE REGULATOR			6									1
879		CUSTOMER INSTALLATION			5						1			4
880		OTHER EXPENSES NATURAL GAS			369									365
887		MAINT MAINS NATURAL GAS DISTRIBUTION			1						—			1
893		MAINT METERS/HOUSE REGTR NG DIS			8									8
901		SUPERVISION CUSTOMER ACCOUNTING			1,275						128			37
902		METER READING			2,232						32			88
903		CUSTOMER RECORDS AND COLLECTIONS			28,639			1			96			824						—
904		UNCOLLECTIBLE CUSTOMER ACCOUNTS			50						50
905		MISCELLANEOUS CUSTOMER ACCOUNTS			1,487						2			35						198
907		SUPERVISION CUSTOMER SERVICE			310						195			—

34

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908		CUSTOMER ASSISTANCE			1,560			2			936			88						—			1
909		INFORMATIONAL AND INSTRUCTIONAL ADVERTISING			10						1			9
910		MISCELLANEOUS CUSTOMER SERVICE			45			—			—			28									1			2
911		SUPERVISION SALES ACTIVITIES			644						629
912		DEMONSTRATING AND SELLING			6,256						6,109			12						—
913		ADVERTISING			26						21			3						2
916		MISCELLANEOUS SALES			970						6									5
920		SALARIES AND WAGES			53,465			6,082			1,531			1,034						2,223			2,498			886			1,151
921		OFFICE SUPPLIES AND EXPENSES			43,777			1,691			387			10,153						366			2,092			190			339
923		OUTSIDE SERVICES EMPLOYED			25,139			10,985			11			17						38			101			12			19
924		A&G PROPERTY INSURANCE			3
925		INJURIES AND DAMAGES			2,192			2,195						(3	)
926		EMPLOYEE PENSIONS AND BENEFITS			15,090												15,090
927		A&G FRANCHISE REQUIREMENTS			3																		3
928		REGULATORY COMMISSION EXPENSE			337			143			(1	)														168			—
930.1		GENERAL ADVERTISING EXPENSES			382			2			366			5						—			1						—
930.2		MISCELLANEOUS GENERAL EXPENSES			6,330			1,514			410			25						188			3			1			1,435
931		RENTS			6,775			733			216			637						58			590			127			244
935		MAINTENANCE OF GENERAL PLAN			2,664			1			2			413
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account)
		TOTAL EXPENSES =		$	231,164		$	23,785		$	14,406		$	18,598		$	20,242		$	3,087		$	8,627		$	1,389		$	3,275

35

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DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920

			DEPARTMENTAL SALARY EXPENSE
						INCLUDED IN AMOUNTS BILLED TO									NUMBER PERSONNEL
NAME OF DEPARTMENT Indicate each department or service function.			TOTAL AMOUNT(1)			PARENT COMPANY			OTHER ASSOCIATES			NON ASSOCIATES			END OF YEAR
			(Dollars in Thousands)
Customer Services			$	101		$	—		$	101		$	—		165
Employee Services				4,640			—			4,640			—		149
Environmental				799			—			799			—		23
Executive Services				2,810			—			2,810			—		26
Financial Services				25,803			—			25,803			—		205
Gas Supply				1,331			—			1,331			—		27
Information Services				445			—			445			—		432
Investor Relations				553			—			553			—		13
Land and Facilities Management				1,578			—			1,578			—		94
Legal				6,082			—			6,082			—		101
Marketing & Sales				1,531			—			1,531			—		84
Operational Support				1,034			—			1,034			—		21
Procurement				2,223			—			2,223			—		59
Public Affairs				2,498			—			2,498			—		43
Regulatory				886			—			886			—		17
Strategic Planning				1,151			—			1,151			—		18
	TOTAL		$	53,465		$	—		$	53,465		$	—		1,477

---

(1)

Billed salary expense figures presented above include only those salary costs directly charged or ultimately distributed to account 920. Salary costs of certain employees in certain departments (including Information Services, Telecommunications, Printing Services and Facilities Maintenance) which are billed via chargeback methodologies, totaling approximately $25 million, are not reflected in the above billed amounts. Additionally, approximately $14 milllion of direct-charged salary cost originates in accounts other than 920 which are more aligned with the service provided (i.e. customer service). Personnel figures above include all service company employees, including those whose salary costs are billed via the chargeback methodologies.

36

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OUTSIDE SERVICES EMPLOYED
ACCOUNT 923

INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.

						RELATIONSHIP
FROM WHOM PURCHASED				ADDRESS		"A" = ASSOCIATE "NA" = NON ASSOCIATE		AMOUNT
								(in Thousands)
Accounting & Auditing Services:
	Deloitte & Touche					NA		$	1,965
Banking Services and Maintenance:
	Bank of America					NA			411
	Branch Banking & Trust					NA			52
	J P Morgan Chase Bank					NA			219
	National Bank of SC					NA			47
	Selkirk Financial Technologies					NA			74
	The Bank of New York					NA			104
	Wachovia					NA			272
									1,179
Payroll and Benefits Administration & Maintenance:
	Towers Perrin					NA			713
Construction Mgmt & Oversight/Environmental
	Alltech Wiring					NA			94
	Honeywell International					NA			61
	Management and Technical Resources					NA			35
									190
Compensatory Damages
	Gloria D Sutton					NA			68
Consulting:
	Cornerstone Ventures lp					NA			135
	Corporate Executive Board					NA			45
	FreeMarkets					NA			27
	Galway Group LP					NA			30
	Hewitt Associates LLC					NA			587
	John W Flitter					NA			28
	Korn/Ferry International					NA			57
	KPMG LLP					NA			142
	Lukens Energy Group Inc					NA			539
	Melissa Hubbard					NA			86
	Mercer Human Resources					NA			642
	Search Consultants International					NA			38
	The Benefit Advocates, Inc.					NA			34
	The Porter Hamel Group, Inc.					NA			85
	Tribble Creative Group					NA			35
	Van Rickland Clary, CDP					NA			53
									2,563
Corporate Compliance:
	O'Cain Advertising					NA			28
Employment Services:
	Adecco Employment Services					NA			101

37

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	Mind Your Business					NA			33
									134
Environmental Services:
	Albrecht Environmental					NA			25
	Arcadis Geraght & Miller Inc					NA			152
	Heritage Industrial Services LLC					NA			466
	TRC Environmental Corp					NA			254
									897
Executive Services:
	MUSC Medical Services					NA			33
Insurance Services:
	Key Risk Management Services, Inc.					NA			50
	South Carolina Second Injury Fund								659
	State of South Carolina					NA			84
									793
Legal Services:
	A. H. Gibbes					NA			234
	Alan & Moore LLP					NA			30
	Alston & Bird LLP					NA			39
	Barnes Alford Stork & Johnson					NA			38
	Belton T. Zeigler					NA			202
	Bracewell and Patterson, LLP					NA			59
	Bruder Gentile Legal Service					NA			37
	Cameron McKenna LLP					NA			844
	Carter Ledyard & Milburn					NA			124
	Cranfill, Sumner, & Hartzog, LLP					NA			31
	Donald Gist ESQ					NA			45
	Ellzey & Brooks, LLC					NA			151
	Energy Security Analysis, Inc.					NA			92
	Haynsworth Baldwin Johnson & Greaves					NA			97
	Haynsworth Sinkler Boyd, PA					NA			351
	Hobbs & Associates, Inc.					NA			297
	Hunton & Williams					NA			30
	Inglesby Falligant Horne Covington & Chish					NA			27
	J. A. Wright & Associates. Inc.					NA			810
	Jones Day Reavis, & Pogue					NA			1,515
	King and Spaulding					NA			655
	Logan Design Group					NA			29
	McDermott, Will & Emery					NA			436
	McDonald McKenzie Rubin Miller & Lybrand					NA			28
	McNair Law Firm					NA			424
	Moore and Van Allen					NA			530
	Nelson Mullins Riley & Scarborough					NA			174
	Ogletree, Deakins, Nash, Smoak & Stewart,PC					NA			263
	Patricia T Smith					NA			331
	Pennington & Lott LLP					NA			106
	Richardson & Birdsong					NA			40
	Richardson, Plowden, Carpenter & Robinson, PA					NA			34
	Riley, Pope, and LA					NA			31
	Smith, Galloway, Lyndall & Fuchs, LLP					NA			402
	Stacey M Jenkins PA					NA			154
	Stuntz, Davis, & Staffier, PC					NA			25
	Willoughby & Hoefer PA					NA			382

38

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	Womble, Carlyle, Sandridge, & Rice PLLC					NA			193
	Winston & Strawn					NA			73
									9,363
Misc Bank Card Purchases:
	US Bank					NA			31
Rating Services:
	Moody's Investor					NA			169
	Standard & Poor					NA			226
									395
	Security Services:
	Coastal International					NA			6,474
	MS Joint Venture					NA			40
	Security Services					NA			315
	Shred First LLC					NA			85
									6,914
Training Services:
	Edge Training Systems					NA			42
	McCrady Training Center								46
									88
All Others less than $25,000 (435 Items)						NA			(215	)
		TOTAL						$	25,139

39

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EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926

INSTRUCTIONS: Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000.

DESCRIPTION			AMOUNT
			(in Thousands)
Pension Plan			$	1,329
Group Insurance				9,288
Stock Purchase Plan				3,018
Disability				969
Education and Tuition Assistance				148
Recreational Clubs				124
Employee Assistance Program				31
Parking				107
Service Awards				42
Others				34
	TOTAL		$	15,090

40

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GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1

INSTRUCTIONS: Provide a listing of the amount included in Account 930.1, "General Advertising Expenses", classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto.

DESCRIPTION		NAME OF PAYEE		AMOUNT
				(in Thousands)
Brand/Image Advertising		McRae Communications, Inc		$	80
		The Lamar Company			4
		Other			3
					87
Directory Memberships		Directory Assistance			9
Event Sponsorship		Best of Broadway			5
		Columbiana Center			5
		Greater Columbia Chamber			4
		Home Builders Association of Greater Cola			4
		Others—Net			3
					21
Job Advertisements		TMP Worldwide			11
		Others—net			2
					13
Print Media Advertising		Atlantic Public			3
		Black Pages USA			23
		Post and Courier.			10
		The State Newspaper			7
		Others—Net			14
					57
Radio Advertising		WCSC			12
		Others—Net			1
					13
Retainers		McRae Communications, Inc			32
TV Advertising		McRae Communications, Inc			25
		WIS TV			29
		Net—Others			3
					57
Weatherline Service Advertising		Weatherline, Inc			41
Other		Net—Others			52
TOTAL				$	382

41

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MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2

INSTRUCTIONS: Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses", classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b) (2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441 (b) (2)) shall be separately classified.

DESCRIPTION			AMOUNT
			(Dollars in Thousands)
Industry association dues			$	2,483
Board of Directors expenses				1,053
Computer resource usage expenses				1,273
Travel expenses (including meals)				174
Postage				131
Computer Hardware/Software Maintenance & Purchases				193
Office of Corporate Secretary				262
Telephone Resource Usage				47
Shareholders expenses				329
Miscellaneous Employee Expenses				14
Marketing research/Information				293
Liability insurance				11
Miscellaneous supplies				6
Employee Stock/Pension plans				29
Other miscellaneous expenses				32
	TOTAL		$	6,330

42

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Note: Rent amounts are charged to Account 931 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts.

RENTS
ACCOUNT 931

INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents", classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts.

TYPE OF PROPERTY			AMOUNT
			(Dollars in Thousands)
Office space			$	5,512
Use of Subsidiary owned Assets				215
Computer equipment				1,012
Other equipment rent				36
	TOTAL		$	6,775

43

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TAXES OTHER THAN INCOME TAXES
ACCOUNT 408

INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income Taxes". Separate the analysis into two groups: (1) other than U. S. Government taxes, and (2) U. S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax.

KIND OF TAX			AMOUNT
			(Dollars in Thousands)
Other than U. S. Government Taxes:
	Business License Fees/Prop Tax		$	1,661
	State Payroll Tax			834
	State Unemployment Tax			48
				2,543
U. S. Government Taxes:
	Social Security and Medicare Tax			2,089
	Federal Payroll Tax			2,166
	Federal Unemployment Tax			15
				4,270
	TOTAL		$	6,813

44

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DONATIONS
ACCOUNT 426.1

INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations", classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details.

NAME OF RECIPIENT			PURPOSE OF DONATION		AMOUNT
					(Dollars in Thousands)
Aiken/Barnwell/Lexington CAC, Inc			Corporate Contribution		$	18
American Cancer Society			Corporate Contribution			3
American Heart Association			Corporate Contribution			14
American Red Cross			Corporate Contribution			10
Beaufort Memorial Hospital Foundation			Corporate Contribution			10
Benedict College			Corporate Contribution			10
Boy Scouts of America			Corporate Contribution			3
Boys & Girls Club of the Midlands, Inc.			Corporate Contribution			8
Brevard Music Center			Corporate Contribution			5
Brookgreen Gardens			Corporate Contribution			16
Carolinas Minority Supplier Development Councils, Inc.			Corporate Contribution			4
Celebrate Freedom Foundation			Corporate Contribution			3
Central Carolina Community Foundation			Corporate Contribution			5
Charleston Stage Company, Inc.			Corporate Contribution			7
Children's Museum of the Low Country			Corporate Contribution			42
City of Charleston			Corporate Contribution			20
City of Port Wentworth			Corporate Contribution			5
Clemson University Foundation			Corporate Contribution			102
College of Charleston			Corporate Contribution			6
Columbia City Ballet			Corporate Contribution			20
Columbia Jewish Community Center			Corporate Contribution			5
Columbia Museum of Art			Corporate Contribution			10
Columbia YMCA			Corporate Contribution			3
Columbia Urban League			Corporate Contribution			15
Communities in Schools of Charleston			Corporate Contribution			5
Congaree Land Trust			Corporate Contribution			6
East Cooper Family YMCA			Corporate Contribution			10
Edventure Inc.			Corporate Contribution			20
Fairfield Behavioral Health Services			Corporate Contribution			15
First Steps			Corporate Contribution			100
Five Points Association			Corporate Contribution			8
Friends of the Hunley Inc			Corporate Contribution			33
Friends of the Sumter County Library			Corporate Contribution			8
Girl Scouts			Corporate Contribution			5
Greater Columbia Chamber of Commerce			Corporate Contribution			3
Greater Summerville-Dorchester Counties Chamber of Commerce			Corporate Contribution			6
Harbor Historical Assn of Georgetown			Corporate Contribution			5
Indian Waters Council Boy Scouts of America			Corporate Contribution			6
Irmo Chapin Recreation Commission			Corporate Contribution			4

45

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Junior Achievement			Corporate Contribution			24
Juvenile Diabetes Foundation			Corporate Contribution			5
March of Dimes			Corporate Contribution			7
Midlands Technical College			Corporate Contribution			25
Orangeburg Calhoun Tech Foundation			Corporate Contribution			30
Palmetto Capital City Classic			Corporate Contribution			5
Palmetto Health Foundation			Corporate Contribution			7
Part-Time Players			Corporate Contribution			25
Ronald McDonald			Corporate Contribution			7
Rotary Clubs			Corporate Contribution			7
SC Chamber of Commerce			Corporate Contribution			67
SCE&G Employee Good Neighbor Fund			Corporate Contribution			20
South Carolina Independent Colleges & Universities			Corporate Contribution			16
South Carolina Law Enforcement Division			Corporate Contribution			6
South Carolina Public Education Foundation			Corporate Contribution			3
SC State Conference NAACP			Corporate Contribution			4
South Carolina Business Hall of Fame			Corporate Contribution			4
South Carolina Center for Birds of Prey			Corporate Contribution			50
South Carolina Aquarium			Corporate Contribution			20
South Carolina Philharmonic Orchestra			Corporate Contribution			10
South Carolina State University			Corporate Contribution			6
Special Olympics			Corporate Contribution			8
Spoleto Festival USA			Corporate Contribution			10
Sumter County Museum			Corporate Contribution			5
The Nurturing Center Inc.			Corporate Contribution			5
The Salvation Army			Corporate Contribution			40
Town of Mount Pleasant			Corporate Contribution			30
Town of Williston			Corporate Contribution			5
Trident County Technical College			Corporate Contribution			20
Trident United Way			Corporate Contribution			47
United Way			Corporate Contribution			226
University of South Carolina System			Corporate Contribution			128
Wateree Community Actions			Corporate Contribution			19
Others less than $3,000 (241 items)			Corporate Contribution			225
	TOTAL				$	1,694

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OTHER DEDUCTIONS
ACCOUNT 426.5

INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other Deductions", classifying such expenses according to their nature.

DESCRIPTION			NAME OF PAYEE		AMOUNT
			(Dollars in Thousands)
Miscellaneous non-operating labor and benefits					$	1,564
Dues and memberships						84
Event Sponsorship						113
Facility maintenance						143
Utilities						112
Miscellaneous Materials & Supplies						44
Leases & Rentals						391
Keyman Retention						1,211
Vehicle/Aircraft expenses						91
Travel and meal expenses						31
Legal Consulting						238
HR Related Consulting						52
Printing						46
Computer resources						162
Contributions, Donations, Entertainment & Gifts						81
Directors Fees & Expenses						33
Auditing Fees						40
Land and Forest Management Contractor Services						66
Physical Guard Services						27
Other						350
	TOTAL				$	4,879

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SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME

INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases and services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.

        See Notes to Financial Statements on page 21.

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ANNUAL REPORT OF SCANA Services, Inc.

Organization Chart

President and Chief Operating Officer

Senior Vice President and Chief Financial Officer

Senior Vice President, General Counsel and Assistant Secretary

Senior Vice President, Natural Gas Asset Management and Procurement

Executive for South Carolina Retail Utility Operations

Executive for Pipeline Operations and Communications Operations

Senior Vice President for Human Resources

Officer for Corporate Compliance and Internal Auditing

Senior Vice President for Governmental Affairs and Economic Development

Senior Vice President for Nuclear Operations

Senior Vice President for Pipeline Operations

Senior Vice President for Marketing and Communications

Vice President for Finance

Secretary

Treasurer

Controller

Risk Management Officer

Chief Information Officer

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ANNUAL REPORT OF SCANA Services, Inc.

Methods of Allocation

Form of Service Agreement

        This Service Agreement (this "Agreement") is entered into as of the            of            , by and between [Subsidiary name], a South Carolina corporation (the "Company") and SCANA Services, Inc., a South Carolina corporation ("SCANA Services").

        WHEREAS, SCANA Services is a direct or indirect wholly owned subsidiary of SCANA Corporation;

        WHEREAS, SCANA Services has been formed for the purpose of providing administrative, management and other services to subsidiaries of SCANA Corporation; and

        WHEREAS, the Company believes that it is in the interest of the Company to provide for an arrangement whereby the Company may, from time to time and at the option of the Company, agree to purchase such administrative, management and other services from SCANA Services:

        NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

        I. SERVICES. SCANA Services supplies, or will supply, certain administrative, management or other services to Company similar to those supplied to other subsidiaries of SCANA Corporation. Such services are and will be provided to the Company only at the request of the Company. Exhibit I hereto lists and describes all of the services that are available from SCANA Services.

        II. PERSONNEL. SCANA Services provides and will provide such services by utilizing the services of their executives, accountants, financial advisers, technical advisers, attorneys and other persons with the necessary qualifications.

        If necessary, SCANA Services, after consultation with the Company, may also arrange for the services of nonaffiliated experts, consultants and attorneys in connection with the performance of any of the services supplied under this Agreement.

        III. COMPENSATION AND ALLOCATION. As and to the extent required by law, SCANA Services provides and will provide such services at cost. Exhibit I hereof contains rules for determining and allocating such costs.

        IV. [TO BE INCLUDED IN CONTRACT WITH PSNC ONLY] NORTH CAROLINA PROVISIONS

(A)

PSNC agrees hereby that:



(1)

it will not incur a charge hereunder except in accordance with North Carolina law and the rules, regulations and orders of the North Carolina Utilities Commission (the "NCUC") promulgated thereunder;



(2)

it will not seek to reflect in rates any cost incurred hereunder to the extent disallowed by the NCUC; and



(3)

it will not incur a charge hereunder, except for charges determined in accordance with Rules 90 and 91 of the Act (Public Utility Holding Company Act of 1935).



(B)

PSNC and SCANA Services acknowledge that as a result of the agreements contained in Sections IV(A) and (A)(3), PSNC will not accept services from SCANA Services if the cost to be charged for the service, as calculated pursuant to Rules 90 and 91 of the Act,

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differs from the amount of charges PSNC is permitted to incur under North Carolina law and the rules, regulations and orders of the NCUC promulgated thereunder.

        V. TERMINATION AND MODIFICATION. The Company may terminate this Agreement by providing 60 days written notice of such termination to SCANA Services. SCANA Services may terminate this Agreement by providing 60 days written notice of such termination to the Company.

This agreement is subject to termination or modification at any time to the extent its performance may conflict with the provisions of the Public Utility Holding Company Act of 1935, as amended, or with any rule, regulation or order of the Securities and Exchange Commission adopted before or after the making of this Agreement. This Agreement shall be subject to the approval of any state commission or other state regulatory body whose approval is, by the laws of said state, a legal prerequisite to the execution and delivery or the performance of this Agreement.

        VI. SERVICE REQUESTS. The Company and SCANA Services initially prepared a Service Request listing services to be provided to the Company by SCANA Services and any special arrangements related to the provision of such services. On or before November 1^st of each year, SCANA Services will prepare a revised Service Request listing services to be provided to the Company by SCANA Services and any special arrangements related to the provision of such services for the following calendar year, based on services provided during the past calendar year. The Company and SCANA Services may supplement the Service Request during the year to reflect any additional or special services that the Company wishes to obtain from SCANA Services, and the arrangements relating thereto.

        VII. BILLING AND PAYMENT. Unless otherwise set forth in a Service Request, payment for services provided by SCANA Services shall be by making remittance of the amount billed or by making appropriate accounting entries on the books of the Company and SCANA Services. Billing will be made on a monthly basis, with the bill to be rendered by the 25th of the month, and remittance or accounting entries completed within 30 days of billing.

        VIII. NOTICE. Where written notice is required by this Agreement, all notices, consents, certificates, or other communications hereunder shall be in writing and shall be deemed given when mailed by United States registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

1.

To the Company:

2.

To SCANA Services:

        IX. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of South Carolina, without regard to their conflict of laws provisions.

        X. MODIFICATION. No amendment, change or modification of this Agreement shall be valid, unless made in writing and signed by all parties hereto.

        XI. ENTIRE AGREEMENT. This Agreement, together with its exhibits, constitutes the entire understanding and agreement of the parties with respect to its subject matter, and effective upon the execution of this Agreement by the respective parties hereof and thereto, any and all prior agreements, understandings or representations with respect to this subject matter are hereby terminated and canceled in their entirety and are of no further force or effect.

        XII. WAIVER. No waiver by any party hereto of a breach of any provision of this Agreement shall constitute a waiver of any preceding or succeeding breach of the same or any other provision hereof.

        XIII. ASSIGNMENT. This Agreement shall inure to the benefit and shall be binding upon the parties and their respective successors and assigns. No assignment of this Agreement or any party's

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rights, interests or obligations here under may be made without the other party's consent, which shall not be unreasonably withheld, delayed or conditioned.

        XIV. SEVERABILITY. If any provision or provisions of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

        IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of this            day of                        .

		SCANA SERVICES, INC.
		By:	Name: Title:
		[Subsidiary]
		By:	Name: Title:

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EXHIBIT I

Description of Services, Cost Accumulation, Assignment and
Allocation Methodologies for
SCANA Services, Inc.

        This document sets forth the methodologies used to accumulate the costs of services performed by SCANA Services, Inc. ("SCANA Services") and to assign or allocate such costs to other subsidiaries and business units within SCANA Corporation ("Client Entities").

Cost of Services Performed

        SCANA Services maintains an accounting system that enables costs to be identified by Cost Center, Account Number or Project, Activity, Resource, and Event ("Account Codes"). The primary inputs to the accounting system are time records of hours worked by SCANA Services employees, accounts payable transactions and journal entries. Charges for labor are made at the employees' effective hourly rate, including the cost of pensions, other employee benefits and payroll taxes. To the extent practicable, costs of services are directly assigned to the applicable Account Codes. The full cost of providing services also includes certain indirect costs, e.g., departmental overheads, administrative and general costs, and taxes. Indirect costs are associated with the services performed in proportion to the directly assigned costs of the services or other relevant cost allocators.

Cost Assignment and Allocation

        SCANA Services costs will be directly assigned, distributed or allocated to Client Entities in the manner prescribed below.

        1.     Costs accumulated in Account Codes for services specifically performed for a single Client Entity will be directly assigned or charged to such Client Entity.

        2.     Costs accumulated in Account Codes for services specifically performed for two or more Client Entities will be distributed among and charged to such Client Entities using methods determined on a case-by-case basis consistent with the nature of the work performed and based on one of the allocation methods described below.

        3.     Costs accumulated in Account Codes for services of a general nature which are applicable to all Client Entities or to a class or classes of Client Entities will be allocated among and charged to such Client Entities by application of one or more of the allocation methods described below.

Allocation Methods

        The following methods will be applied, as indicated in the Description of Services section that follows, to allocate costs for services of a general nature.

        1.     Information Systems Charge-back Rates—Rates for services, including but not limited to Software, Consulting, Mainframe, Midtier and Network Connectivity Services, are based on the costs of labor, materials and Information Services overheads related to the provision of each service. Such rates are applied based on the specific equipment employed and the measured usage of services by Client Entities. These rates will be determined annually based on actual experience and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes.

        2.     Margin Revenue Ratio—"Margin" is equal to the excess of sales revenues over the applicable cost of sales, i.e., cost of fuel for generation and gas for resale. The numerator is equal to margin revenues for a specific Client Entity and the denominator is equal to the combined margin revenues of all the applicable Client Entities. This ratio will be evaluated annually based on actual results of

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operations for the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time, based on results of operations for a subsequent twelve-month period, as may be required due to significant changes.

        3.     Number of Customers Ratio—A ratio based on the number of retail electric and/or gas customers. This ratio will be determined annually based on the actual number of customers at the end of the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes.

        4.     Number of Employees Ratio—A ratio based on the number of employees benefiting from the performance of a service. This ratio will be determined annually based on actual counts of applicable employees at the end of the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes.

        5.     Three-Factor Formula—This formula will be determined annually based on the average of gross property (original cost of plant in service, excluding depreciation), payroll charges (salaries and wages, including overtime, shift premium and holiday pay, but not including pension, benefit and company-paid payroll taxes) and gross revenues during the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes.

        6.     Modified Three-Factor Method—a ratio for the allocation of non-directly assigned corporate governance costs. The Modified Three-Factor Method provides for an allocation of cost to the parent company; the Three-Factor Method does not. The formula will be determined annually based on the average of gross property (original cost of plant in service, excluding depreciation), payroll charges (salaries and wages, including overtime, shift premium and holiday pay, but not including pension, benefit and company paid payroll taxes) and gross revenues during the previous calendar year. For the purpose of the Modified Three-Factor Method, the dividends resulting from operations of the subsidiaries are used as a proxy for revenues for the parent company.

        7.     Telecommunications Charge-back Rates—Rates for use of telecommunications services other than those encompassed by Information Systems Charge-back Rates are based on the costs of labor, materials, outside services and Telecommunications overheads. Such rates are applied based on the specific equipment employment and the measured usage of services by Client Entities. These rates will be determined annually based on actual experience and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes.

        8.     Gas Sales Ratio—A ratio based on the actual number of dekatherms of natural gas sold by the applicable gas distribution or marketing operations. This ratio will be determined annually based on actual results of operations for the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time, based on results of operations for a subsequent twelve-month period, as may be required due to significant changes.

Description of Services

        A description of each of the services performed by SCANA Services, which may be modified from time to time, is presented below. As discussed above, where identifiable, costs will be directly assigned or distributed to Client Entities. For costs accumulated in Account Codes which are for services of a general nature that cannot be directly assigned or distributed, the method or methods of allocation are also set forth. Substitution or changes may be made in the methods of allocation hereinafter specified, as may be appropriate, and will be provided to state regulatory agencies and to each affected Client Entity and appropriate notice (through 60-day letter or otherwise) will be given to the SEC.

        1.     Information Systems Services—Provides electronic data processing services. Costs of a general nature are allocated using the Information Systems Charge-back Rates.

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        2.     Customer Services—Provides billing, mailing, remittance processing, call center and customer communication services for electric and gas customers. Costs of a general nature are allocated using the Margin Revenue Ratio.

        3.     Marketing and Sales—Establishes strategies, provides oversight for marketing, sales and branding of utility and related services and conducts marketing and sales programs. Costs of a general nature are allocated using the Number of Customers Ratio.

        4.     Employee Services—Includes Human Resources which establishes and administers policies and oversees compliance with regulations in the areas of employment, compensation and benefits, processes payroll and administers corporate training. Also includes employee communications, facilities management and mail services. Costs of a general nature are allocated using the Number of Employees Ratio or the Modified Three-Factor Method as appropriate.

        5.     Corporate Compliance—Oversees compliance with all laws, regulations and policies applicable to all of SCANA Corporation's businesses and directs compliance training. Costs of general nature are allocated using the Modified Three-Factor Method.

        6.     Purchasing—Provides procurement services. Costs of a general nature are allocated using the Three-Factor Formula.

        7.     Financial Services—Provides treasury, accounting, tax, financial planning, rate and auditing services. Costs of a general nature are allocated using the Three-Factor Formula or the Modified Three-Factor Method as appropriate.

        8.     Risk Management—Provides services related to the identification and mitigation of risk, and the development and implementation of risk management strategy. Encompasses credit and collections, risk analyses, insurance, claims, security, environmental and safety services. Costs of a general nature are allocated using the Three Factor Method or the Modified Three-Factor Method as appropriate.

        9.     Public Affairs—Maintains relationships with government policy makers, conducts lobbying activities and provides community relations functions. Costs of a general nature are allocated using the Three-Factor Formula or the Modified Three-Factor Method as appropriate.

        10.   Legal Services—Provides various legal services and general legal oversight; handles claims. Costs of a general nature are allocated using the Modified Three-Factor Formula.

        11.   Investor Relations—Maintains relationships with the financial community and provides shareholder services. Costs of a general nature are allocated using the Modified Three-Factor Formula.

        12.   Telecommunications—Provides telecommunications services, primarily the use of telephone equipment. Costs are allocated using the Telecommunications Charge-back Rates.

        13.   Gas Supply and Capacity Management—Provides gas supply and capacity management services. Costs of a general nature are allocated using the Gas Sales Ratio.

        14.   Strategic Planning—Develops corporate strategies and business plans. Costs of a general nature are allocated using the Modified Three-Factor Formula.

        15.   Executive—Provides executive and general administrative services. Costs of a general nature are allocated using the Modified Three-Factor Formula.

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EXHIBIT II

FORM OF INITIAL SERVICE REQUEST

        The undersigned requests all of the services listed in Exhibit I from SCANA Services Company. The services requested hereunder shall commence on January 1, 2004 and be provided through December 31, 2004.

		PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
		By:	Name: Title:
		By:	Name: Title:

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ANNUAL REPORT OF SCANA Services, Inc.

        Annual Statement of Compensation for Use of Capital Billed

NA

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ANNUAL REPORT OF SCANA Services, Inc.

Signature Clause

        Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized.

			SCANA Services, Inc. (Name of Reporting Company)
		By:	/s/  JAMES E. SWAN, IV       (Signature of Signing Officer)
			Controller (Printed Name and Title of Signing Officer)

Date: April 28, 2004

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QuickLinks

LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
ANNUAL REPORT OF SCANA Services, Inc.
SCHEDULE I—COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2003
SCHEDULE II—SERVICE COMPANY PROPERTY
SCHEDULE III ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY
SCHEDULE IV—INVESTMENTS
SCHEDULE V—ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
SCHEDULE VI—FUEL STOCK EXPENSES UNDISTRIBUTED
SCHEDULE VII—STORES EXPENSE UNDISTRIBUTED
SCHEDULE VIII MISCELLANEOUS CURRENT AND ACCRUED ASSETS
SCHEDULE IX MISCELLANEOUS DEFERRED DEBITS
SCHEDULE X RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
SCHEDULE XI—PROPRIETARY CAPITAL
SCHEDULE XII—LONG-TERM DEBT
SCHEDULE XIII—CURRENT AND ACCRUED LIABILITIES
SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS
SCHEDULE XV STATEMENT OF INCOME
ANALYSIS OF BILLING ASSOCIATE COMPANIES ACCOUNT 457
ANALYSIS OF BILLING NONASSOCIATE COMPANIES ACCOUNT 458
SCHEDULE XVI ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES
SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
DEPARTMENTAL ANALYSIS OF SALARIES ACCOUNT 920
OUTSIDE SERVICES EMPLOYED ACCOUNT 923
EMPLOYEE PENSIONS AND BENEFITS ACCOUNT 926
GENERAL ADVERTISING EXPENSES ACCOUNT 930.1
MISCELLANEOUS GENERAL EXPENSES ACCOUNT 930.2
RENTS ACCOUNT 931
TAXES OTHER THAN INCOME TAXES ACCOUNT 408
DONATIONS ACCOUNT 426.1
OTHER DEDUCTIONS ACCOUNT 426.5
SCHEDULE XVIII NOTES TO STATEMENT OF INCOME
Organization Chart
Methods of Allocation Form of Service Agreement
EXHIBIT I Description of Services, Cost Accumulation, Assignment and Allocation Methodologies for SCANA Services, Inc.
EXHIBIT II FORM OF INITIAL SERVICE REQUEST
Signature Clause