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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

Form U-13-60

ANNUAL REPORT

For the Period

Beginning January 1, 2004 and Ending December 31, 2004

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 SHEETS		Schedule I		3
	SERVICE COMPANY PROPERTY		Schedule II		5
	ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY		Schedule III		7
	INVESTMENTS		Schedule IV		8
	ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES		Schedule V		8
	FUEL STOCK EXPENSES UNDISTRIBUTED		Schedule VI		9
	STORES EXPENSE UNDISTRIBUTED		Schedule VII		9
	MISCELLANEOUS CURRENT AND ACCRUED ASSETS		Schedule VIII		9
	MISCELLANEOUS DEFERRED DEBITS		Schedule IX		10
	RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES		Schedule X		10
	PROPRIETARY CAPITAL		Schedule XI		11
	LONG-TERM DEBT		Schedule XII		12
	CURRENT AND ACCRUED LIABILITIES		Schedule XIII		13
	NOTES TO FINANCIAL STATEMENTS		Schedule XIV		14
	COMPARATIVE STATEMENTS OF OPERATIONS		Schedule XV		15
	ANALYSIS OF BILLING—ASSOCIATE COMPANIES		Account 457		18
	ANALYSIS OF BILLING—NONASSOCIATE COMPANIES		Account 458		18
	ANALYSIS OF CHARGES FOR SERVICE—ASSOCIATE AND NONASSOCIATE COMPANIES		Schedule XVI		19
	SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION		Schedule XVII		21
	DEPARTMENTAL ANALYSIS OF SALARIES		Account 920		27
	OUTSIDE SERVICES EMPLOYED		Account 923		28
	EMPLOYEE PENSIONS AND BENEFITS		Account 926		31
	GENERAL ADVERTISING EXPENSES		Account 930.1		32
	MISCELLANEOUS GENERAL EXPENSES		Account 930.2		33
	RENTS		Account 931		34
	TAXES OTHER THAN INCOME TAXES		Account 408		35
	DONATIONS		Account 426.1		36
	OTHER DEDUCTIONS		Account 426.5		38
	NOTES TO STATEMENTS OF OPERATIONS		Schedule XVIII		39

LISTING OF INSTRUCTIONAL FILING REQUIREMENTS

Description of Reports or Statements			Page Number
	ORGANIZATION CHART		40
	METHODS OF ALLOCATION		41
	ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED		48

2

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ANNUAL REPORT OF SCANA Services, Inc.

SCHEDULE I—COMPARATIVE BALANCE SHEETS
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 (Dollars in Thousands)
						CURRENT			PRIOR
		SERVICE COMPANY PROPERTY
101		Service company property		(Schedule II)		$	51,602		$	48,072
107		Construction work in progress		(Schedule II)			6,130			4,189
		Total Property					57,732			52,261
108		Less accumulated provision for depreciation and amortization of service company property		(Schedule III)			19,930			13,714
		Net Service Company Property					37,802			38,547
		INVESTMENTS
123		Investments in associate companies		(Schedule IV)			—			—
124		Other investments		(Schedule IV)			—			—
		Total Investments					—			—
		CURRENT AND ACCRUED ASSETS
131		Cash					13,640			172
134		Special deposits					—			—
135		Working funds					64			67
136		Temporary cash investments		(Schedule IV)			—			—
141		Notes receivable					—			—
143		Accounts receivable					5			446
144		Accumulated provision for uncollectible accounts					—			—
146		Accounts receivable from associate companies		(Schedule V)			105,706			183,980
152		Fuel stock expenses undistributed		(Schedule VI)			—			—
154		Materials and supplies					70			62
163		Stores expense undistributed		(Schedule VII)			—			—
165		Prepayments					3,053			2,385
174		Miscellaneous current and accrued assets		(Schedule VIII)			—			—
		Total Current and Accrued Assets					122,538			187,112
		DEFERRED DEBITS
181		Unamortized debt expense					—			—
183		Preliminary survey & investigation					—			85
184		Clearing accounts					—			2
186		Miscellaneous deferred debits		(Schedule IX)			1,683			2,546
188		Research, development or demonstration expenditures		(Schedule X)			—			—
190		Accumulated deferred income taxes					—			—
		Total Deferred Debits					1,683			2,633
		TOTAL ASSETS AND OTHER DEBITS				$	162,023		$	228,292

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		LIABILITIES AND PROPRIETARY CAPITAL (Dollars in Thousands)
						CURRENT			PRIOR
		PROPRIETARY CAPITAL
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)			1,005			2,456
225		Unamortized premium on long-term debt					—			—
226		Unamortized discount on long-term debt-debit					—			—
		Total Long-term Debt					1,005			2,456
		CURRENT AND ACCRUED LIABILITIES
228		Accrued provision for injuries and damages					181			237
231		Notes payable					—			—
232		Accounts payable					28,636			29,953
233		Notes payable to associate companies		(Schedule XIII)			—			—
234		Accounts payable to associate companies		(Schedule XIII)			85,925			159,625
236		Taxes accrued					(472	)		445
237		Interest accrued					—			—
238		Dividends declared					—			—
241		Tax collections payable					209			152
242		Miscellaneous current and accrued liabilities		(Schedule XIII)			14,579			17,309
		Total Current and Accrued Liabilities					129,058			207,721
		DEFERRED CREDITS
253		Other deferred credits					20,419			7,722
255		Accumulated deferred investment tax credits					—			—
		Total Deferred Credits					20,419			7,722
282		ACCUMULATED DEFERRED INCOME TAXES					5,583			4,927
283		Accumulated Deferred Income Taxes-Prepayments					492			—
		TOTAL LIABILITIES AND PROPRIETARY CAPITAL				$	162,023		$	228,292

4

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

SCHEDULE II—SERVICE COMPANY PROPERTY

		DESCRIPTION (Dollars in Thousands)		BALANCE AT BEGINNING OF YEAR			ADDITIONS			RETIREMENT OR SALES			OTHER CHANGES(1)			BALANCE AT CLOSE OF YEAR
		SERVICE COMPANY PROPERTY
Account
301		ORGANIZATION			—			—			—			—			—
303		MISCELLANEOUS INTANGIBLE PLANT		$	18,566		$	2,373			—			—		$	20,939
304		LAND AND LAND RIGHTS			—			—			—			—			—
305		STRUCTURES AND IMPROVEMENTS			325			20			(52	)		—			293
306		LEASEHOLD IMPROVEMENTS			4,206			—			(2,521	)		—			1,685
307		EQUIPMENT(2)			12,204			4,021			(261	)		—			15,964
308		OFFICE FURNITURE AND EQUIPMENT			1,449			1,120			(472	)		—			2,097
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT			—			—			—			—			—
310		AIRCRAFT AND AIRPORT EQUIPMENT			5,244			—			—			—			5,244
311		OTHER SERVICE COMPANY PROPERTY(3)			6,078			1,142			(1,840	)		—			5,380
		SUB-TOTAL			48,072			8,676			(5,146	)		—			51,602
107		CONSTRUCTION WORK IN PROGRESS(4)			4,189			11,899			(8,676	)		(1,282	)		6,130
		TOTAL		$	52,261		$	20,575		$	(13,822	)	$	(1,282	)	$	57,732

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(1)

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

Transfer of assets to other subsidiary Business Units.

5

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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 (Dollars in Thousands)		ADDITIONS			BALANCE AT CLOSE OF YEAR
EDP Equipment		$	4,018		$	15,303
Office Data Handling Equipment			3			661
TOTAL		$	4,021		$	15,964

(3)

DESCRIBE OTHER SERVICE COMPANY PROPERTY:

Capitalized computer leases of $1,005, communication equipment of $2,723, office furniture and equipment of $1,635, and shop tools of $17.

(4)

DESCRIBE CONSTRUCTION WORK IN PROGRESS:

Primarily data processing systems

6

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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

		DESCRIPTION (Dollars in Thousands)		BALANCE AT BEGINNING OF YEAR			ADDITIONS CHARGED TO ACCOUNT 403			RETIREMENTS			OTHER CHANGES ADD (DEDUCT)(1)			BALANCE AT CLOSE OF YEAR
Account
301		ORGANIZATION			—			—			—			—			—
303		MISCELLANEOUS INTANGIBLE PLANT		$	5,749		$	3,332			—			—		$	9,081
304		LAND AND LAND RIGHTS			—			—			—			—			—
305		STRUCTURES AND IMPROVEMENTS			65			9		$	(51	)		—			23
306		LEASEHOLD IMPROVEMENTS			859			82			(2,521	)	$	1,669			89
307		EQUIPMENT			5,121			3,236			(260	)		36			8,133
308		OFFICE FURNITURE AND FIXTURES			820			390			(513	)		364			1,061
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT			—			—			—			—			—
310		AIRCRAFT AND AIRPORT EQUIPMENT			742			264			—			—			1,006
311		OTHER SERVICE COMPANY PROPERTY			358			275			(348	)		252			537
		TOTAL		$	13,714		$	7,588		$	(3,693	)	$	2,321		$	19,930

(1)

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

Primarily related to Call Center improvements.

7

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

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 (Dollars in Thousands)				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
ACCOUNT 146—ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES(1)
	South Carolina Generating Company, Inc.			$	47,724		$	3,459
	SCG Pipeline, Inc.				260			(3,494	)
	ServiceCare, Inc.				(2,047	)		(4,429	)
	SCANA Energy Marketing, Inc.				89,592			118,257
	Primesouth Inc.				1,083			1,236
	SCANA Development Corporation				2			2
	South Carolina Pipeline Corporation				12,293			6,839
	SCANA Communications, Inc.				(25	)		(66,012	)
	SCANA Resources, Inc.				(84	)		—
	Public Service Company of North Carolina, Incorporated				2,915			2,102
	South Carolina Electric & Gas Company				32,267			47,746
		TOTAL		$	183,980		$	105,706

(1)

Balances at close of year include money pool borrowings.

8

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ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:			TOTAL PAYMENTS
South Carolina Pipeline Corporation				16
SCG Pipeline, Inc.				3
SCANA Communications, Inc.				9
ServiceCare, Inc.				23
SCANA Petroleum Resources, Inc.				2
SCANA Energy Marketing, Inc.				520
	TOTAL PAYMENTS		$	573

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

SUMMARY:

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

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

9

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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 (Dollars in Thousands)				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
ACCOUNT 186—MISCELLANEOUS DEFERRED DEBITS
	Other work in progress			$	604		$	556
	Prepaid software				564			356
	Unbilled clearing				38			271
	Real estate purchased in connection with employee relocations				1,289			—
	Pht claims				45			—
	Prepaid consulting fees				—			500
	Other (1 item)				6			—
		TOTAL		$	2,546		$	1,683

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

10

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (Dollars in Thousands)				AMOUNT
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		$	—		$	—		$	—		$	—

11

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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.

(Dollars in Thousands)
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
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%		—		$	2,456		$	72		$	(1,523	)	$	1,005
		TOTAL								$	2,456		$	72		$	(1,523	)	$	1,005

(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.

12

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (Dollars in Thousands)				BALANCE AT BEGINNING OF YEAR			BALANCE AT CLOSE OF YEAR
ACCOUNT 233—NOTES PAYABLE TO ASSOCIATE COMPANIES
		TOTAL		$	—		$	—
ACCOUNT 234—ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES(1)
	SCANA Corporation			$	112,312		$	85,999
	South Carolina Electric & Gas Company				47,500			—
	SCANA Energy Marketing, Inc.				2			—
	SCANA Communications, Inc.				(189	)		(74	)
		TOTAL		$	159,625		$	85,925
ACCOUNT 242—MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
	Accrued payroll			$	2,942		$	128
	Employee/officer incentive compensation				14,367			12,646
	Accrued liability				—			1,805
		TOTAL		$	17,309		$	14,579

(1)

Balances at close of year include money pool borrowings.

13

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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.

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.

14

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

SCHEDULE XV
STATEMENTS OF OPERATIONS

ACCOUNT		DESCRIPTION (Dollars in Thousands)		CURRENT YEAR			PRIOR YEAR
		INCOME
415		Revenue from merchandise		$	1		$	0
417.0		Other nonutility revenue			711			917
418.0		Non operating rent			(33	)		39
419.0		Interest & dividends			121			2
421		Miscellaneous income or loss			3,540			5,311
447		Sales for Resale Utilities & Public Authorities			0			30
454		Rent from electric property			229			215
456		Other electric revenue			231			288
457		Services rendered to associate companies			236,547			224,331
493		Rent from gas property			0			31
		Total Income			241,347			231,164
		EXPENSE
350		Superintendence operations			0			3
408		Taxes other than income taxes			7,163			6,813
409		Income taxes			(1,148	)		(498	)
410		Provision for deferred income taxes			1,148			498
414		Depreciation and amortization expense			7,472			5,345
416		Expense from merchandise			603			924
417.1		Other nonutility expenses			1,200			1,766
426.1		Donations			1,826			1,694
426.2		Life insurance			(2,398	)		(1,031	)
426.3		Penalties			(1	)		0
426.4		Civic, politic and related accounts			1,248			1,178
426.5		Other deductions			5,754			4,879
430		Interest on debt to associate companies			1,377			1,902
432		AFUDC			(69	)		28
500		Operation supervision and engineering steam			0			4
506		Operation misc steam			834			789
510		Maint supervision and engineering			52			50
511		Maint structures steam			1			9
512		Maint boiler plant steam			1			1
513		Maint electric plant steam			0			3
514		Maint Misc steam plant			24			2
517		Operation supervision and engineering nuclear			450			412
519		Operation coolants and water			104			39
520		Operation steam expenses nuclear			166			156
524		Operation misc nuclear			2,593			2,441
528		Maint Supervision and engineering Nuclear			38			89
529		Maint structures Nuclear Power			3			8
532		Maint misc nuclear			501			438

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535		Operation supervision and engineering Hydro			1			7
537		Operation expenses hydro			31			26
539		Operation misc hydraulic pwr gen			96			96
544		Maint electric plant hydro			0			3
545		Maint misc hydro plant			0			1
546		Operation supervision and engineering			11			5
549		Operation misc other power generation			53			28
552		Maintenance Structures other power			1			0
556		System control and load			132			126
560		Operation supervision and engineering			6			2
561		Operation load dispatching transmission			29			25
562		Operation station expenses transmission			133			62
563		Operation OH line expenses transmission			1			0
566		Operation misc transmission			302			375
567		Oper rents Transmission			199			192
568		Maint supervision and engineering			12			12
569		Maint structures transmission			28			42
570		Maint station equipment transmission			201			184
571		Maint overhead lines transmission			41			47
573		Maint misc transmission			58			43
580		Distribution operation supervision and engineering			5			9
581		Distribution operation load dispatch			1			1
582		Distribution operation station expenses			101			68
583		Distribution operation remove and reset			3			2
585		Distribution operation street light and sign			10			6
586		Distribution operation meter expenses			6			7
588		Distribution operation misc distribution			873			1,073
592		Distribution maint of station equipment			56			53
593		Distribution maint of OH Lines			227			102
594		Distribution maint underground lines			35			32
595		Distribution maint underground transformers			1			0
596		Distribution maint street light and signal			20			28
597		Distribution maint meters			4			4
598		Distribution maint misc distribution plant			30			4
735		Environmental amortization and misc			839			94
844		LNG-Operation			2			0
851		System control and load dispatch			338			300
853		Compressor station labor and expenses			1			3
856		Mains expense			1			4
857		Meas and reg station			2			7
863		Maint mains transmission			2			0
865		Maint meas & reg stat trans			2			0
870		Supervision and engineering natural gas distribution			2			2
874		Mains and services natural gas distribution			122			97
878		Meter and house regulator			4			6
879		Customer installation			2			5
880		Other expenses natural gas			352			369
887		Maint mains natural gas distribution			1			1
892		Maint services NG distribution			10			0
893		Maint meters/house regtr natural gas distribution			8			8

16

---

901		Supervision customer accounting			1,177			1,275
902		Meter reading			1,745			2,232
903		Customer records and collections			31,456			28,639
904		Uncollectible Customer Accounts			0			50
905		Miscellaneous customer accounts			2,457			1,487
907		Supervision customer service			266			310
908		Customer assistance			1,390			1,560
909		Informational and instructional advertising			30			10
910		Miscellaneous customer service			13			45
911		Supervision sales activities			609			644
912		Demonstrating and selling			3,339			6,256
913		Advertising			87			26
916		Miscellaneous sales			926			970
920		Salaries and wages *			52,421			53,465
921		Office supplies and expenses			47,506			43,777
923		Outside services employed			24,708			25,139
924		A&G Property Insurance			47			3
925		Injuries and damages			1,910			2,192
926		Employee pensions and benefits			17,436			15,090
927		A&G Franchise Requirements			0			3
928		Regulatory commission expense			1,585			337
930.1		General advertising expenses			1,457			382
930.2		Miscellaneous general expenses			7,003			6,330
931		Rents			7,845			6,775
935		Maintenance of general plant			2,597			2,664
		Total Expense			241,347			231,164
		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.

17

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457

NAME OF ASSOCIATE COMPANY (Dollars in Thousands)		DIRECT COSTS CHARGED			INDIRECT COSTS CHARGED			COMPENSATION FOR USE OF CAPITAL		TOTAL AMOUNT BILLED
		457-1			457-2			457-3
South Carolina Electric & Gas Company		$	121,766		$	40,494				$	162,260
South Carolina Fuel Company, Inc.			113			—					113
South Carolina Pipeline Corporation			6,803			3,544					10,347
Public Service Company of North Carolina, Incorporated			20,654			9,155					29,809
SCANA Communications, Inc.			939			199					1,138
SCANA Energy Marketing, Inc.			17,392			5,753					23,145
ServiceCare, Inc.			1,023			370					1,393
SCANA Resources, Inc.			1			—					1
SCANA Development Corporation			19			—					19
SCANA Petroleum Resources, Inc.			6			—					6
South Carolina Generating Company, Inc.			1,031			1,423					2,454
Primesouth Inc.			2,365			1,053					3,418
SCANA Holding			803			388					1,194
SCG, Inc.			1,157			93					1,250
TOTAL		$	174,075		$	62,472				$	236,547

ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458

NAME OF NONASSOCIATE COMPANY		DIRECT COST CHARGED			INDIRECT COST CHARGED			COMPENSATION FOR USE OF CAPITAL			TOTAL COST			EXCESS OR DEFICIENCY			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.

18

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES

			ASSOCIATE COMPANY CHARGES									NONASSOCIATE COMPANY CHARGES						TOTAL CHARGES FOR SERVICE
DESCRIPTION OF ITEMS (Dollars in Thousands)			DIRECT COST			INDIRECT COST			TOTAL			DIRECT COST		INDIRECT COST		TOTAL		DIRECT COST			INDIRECT COST			TOTAL
408	TAXES OTHER THAN INCOME TAXES			4,190			2,973			7,163		0		0		0			4,190			2,973			7,163
414	DEPRECIATION AND AMORTIZATION EXPENSE			0			7,472			7,472		0		0		0			0			7,472			7,472
416	EXPENSES FROM MERCHANDISE			350			253			603		0		0		0			350			253			603
417.1	OTHER NONUTILITY EXPENSES			955			245			1,200		0		0		0			955			245			1,200
426.1	DONATIONS			1,769			57			1,826		0		0		0			1,769			57			1,826
426.2	LIFE INSURANCE			(2,398	)		0			(2,398	)	0		0		0			(2,398	)		0			(2,398	)
426.3	PENALTIES			0			(1	)		(1	)	0		0		0			0			(1	)		(1	)
426.4	CIVIC, POLITIC AND RELATED ACCOUNTS			1,039			209			1,248		0		0		0			1,039			209			1,248
426.5	OTHER DEDUCTIONS			3,556			2,198			5,754		0		0		0			3,556			2,198			5,754
432	ALLOW FUNDS USED DURING CONST			0			(69	)		(69	)	0		0		0			0			(69	)		(69	)
506	OPERATION MISC STEAM			834			0			834		0		0		0			834			0			834
510	MAINT SUPERVISION AND ENGINEERING			52			0			52		0		0		0			52			0			52
511	MAINTENANCE STRUCTURES STEAM			1			0			1		0		0		0			1			0			1
512	MAINT BOILER PLANT STEAM			1			0			1		0		0		0			1			0			1
514	MAINTENANCE MISC STEAM POWER EXPENSES			24			0			24		0		0		0			24			0			24
517	OPERATION SUPERVISION AND ENGINEERING NUCLEAR			450			0			450		0		0		0			450			0			450
519	OPERATION COOLANTS AND WATER			104			0			104		0		0		0			104			0			104
520	OPERATION STEAM EXPENSES NUCLEAR			166			0			166		0		0		0			166			0			166
524	OPERATION MISC NUCLEAR			2,593			0			2,593		0		0		0			2,593			0			2,593
528	MAINTENANCE SUPERVISION AND ENGINEERING NUCLEAR			38			0			38		0		0		0			38			0			38
529	MAINTENANCE STRUCTURES NUCLEAR POWER			3			0			3		0		0		0			3			0			3
532	MAINT MISC NUCLEAR			501			0			501		0		0		0			501			0			501
535	OPERATION SUPERVISION AND ENGINEERING HYDRO			1			0			1		0		0		0			1			0			1
537	OPERATION EXPENSES HYDRO			31			0			31		0		0		0			31			0			31
539	OPERATION MISC HYDRAULIC PWR GEN			96			0			96		0		0		0			96			0			96
546	OPERATION SUPERVISION AND ENGINEERING			11			0			11		0		0		0			11			0			11
549	OPERATION MISC OTHER POWER GENERATION			53			0			53		0		0		0			53			0			53
552	MAINTENANCE STRUCTURES OTHER POWER			1			0			1		0		0		0			1			0			1
556	SYSTEM CONTROL AND LOAD			132			0			132		0		0		0			132			0			132
560	OPERATION SUPERVISION AND ENGINEERING			6			0			6		0		0		0			6			0			6
561	OPERATION LOAD DISPATCHING TRANSMISSION			29			0			29		0		0		0			29			0			29
562	OPERATION STATION EXPENSES TRANSMISSION			133			0			133		0		0		0			133			0			133
563	OPERATION OH LINE EXPENSES TRANSMISSION			1			0			1		0		0		0			1			0			1
566	OPERATION MISC TRANSMISSION			302			0			302		0		0		0			302			0			302
567	OPER RENTS TRANS			199			0			199		0		0		0			199			0			199
568	MAINT SUPERVISION AND ENGINEERING			12			0			12		0		0		0			12			0			12
569	MAINT STRUCTURES TRANSMISSION			28			0			28		0		0		0			28			0			28
570	MAINT STATION EQUIPMENT TRANSMISSION			201			0			201		0		0		0			201			0			201
571	MAINT OVERHEAD LINES TRANSMISSION			41			0			41		0		0		0			41			0			41
573	MAINT MISC TRANSMISSION			58			0			58		0		0		0			58			0			58
580	DISTRIBUTION OPER SUPERVISION AND ENGINEERING			5			0			5		0		0		0			5			0			5

19

---

581	DISTRIBUTION OPER LOAD DISPATCH			1			0			1		0		0		0			1			0			1
582	DISTRIBUTION OPER STATION EXPENSES			101			0			101		0		0		0			101			0			101
583	DISTRIBUTION OPER REMOVE AND RESET			3			0			3		0		0		0			3			0			3
585	DISTRIBUTION OPER STREET LIGHT AND SIGNAL			10			0			10		0		0		0			10			0			10
586	DISTRIBUTION OPER METER EXPENSES			6			0			6		0		0		0			6			0			6
588	DISTRIBUTION OPER MISC DISTRIBUTION			873			0			873		0		0		0			873			0			873
592	DISTRIBUTION MAINT OF STATION EQUIPMENT			56			0			56		0		0		0			56			0			56
593	DISTRIBUTION MAINT OF OH LINES			227			0			227		0		0		0			227			0			227
594	DISTRIBUTION MAINT UNDERGROUND LINES			35			0			35		0		0		0			35			0			35
595	DISTRIBUTION MAINT INDERGROUND TRANSFORMERS			1			0			1		0		0		0			1			0			1
596	DISTRIBUTION MAINT STREET LIGHT AND SIGNAL			20			0			20		0		0		0			20			0			20
597	DISTRIBUTION MAINTENANCE METERS			4			0			4		0		0		0			4			0			4
598	DISTRIBUTION MAINT MISC DISTRIBUTION PLANT			30			0			30		0		0		0			30			0			30
735	ENVIRONMENTAL AMORTIZATION AND MISC			839			0			839		0		0		0			839			0			839
844	LNG-OPERATION			2			0			2		0		0		0			2			0			2
851	SYSTEM CONTROL AND LOAD DISPATCH			338			0			338		0		0		0			338			0			338
853	COMPRESSION STATION LABOR & EXPENSES			1			0			1		0		0		0			1			0			1
856	MAINS EXPENSE			1			0			1		0		0		0			1			0			1
857	MEAS AND REG STATION			2			0			2		0		0		0			2			0			2
863	MAINT MAINS TRANSMISSION			2			0			2		0		0		0			2			0			2
865	MAIN MEAS & REG STAT TRANS			2			0			2		0		0		0			2			0			2
870	SUPERVISION AND ENGINEERING NAT URAL GAS DISTRIBUTION			2			0			2		0		0		0			2			0			2
874	MAINS AND SERVICE NATURAL GAS DISTRIBUTION			122			0			122		0		0		0			122			0			122
878	METER AND HOUSE REGULATOR			4			0			4		0		0		0			4			0			4
879	CUSTOMER INSTALLATION			2			0			2		0		0		0			2			0			2
880	OTHER EXPENSES NATURAL GAS			352			0			352		0		0		0			352			0			352
887	MAINT MAINS NATURAL GAS DISTRIBUTION			1			0			1		0		0		0			1			0			1
892	MAINT SERVICES NG DISTRIBUTION			10			0			10		0		0		0			10			0			10
893	MAINT METERS/HOUSE REGTR NG DIS			8			0			8		0		0		0			8			0			8
901	SUPERVISION CUSTOMER ACCOUNTING			1,176			1			1,177		0		0		0			1,176			1			1,177
902	METER READING			754			991			1,745		0		0		0			754			991			1,745
903	CUSTOMER RECORDS AND COLLECTIONS			31,454			2			31,456		0		0		0			31,454			2			31,456
905	MISCELLANEOUS CUSTOMER ACCOUNTS			2,454			3			2,457		0		0		0			2,454			3			2,457
907	SUPERVISION CUSTOMER SERVICE			266			0			266		0		0		0			266			0			266
908	CUSTOMER ASSISTANCE			1,390			0			1,390		0		0		0			1,390			0			1,390
909	INFORMATIONAL AND INSTRUCTIONAL ADVERTISING			30			0			30		0		0		0			30			0			30
910	MISCELLANEOUS CUSTOMER SERVICE			13			0			13		0		0		0			13			0			13
911	SUPERVISION SALES ACTIVITIES			609			0			609		0		0		0			609			0			609
912	DEMONSTRATING AND SELLING			3,219			120			3,339		0		0		0			3,219			120			3,339
913	ADVERTISING			87			0			87		0		0		0			87			0			87
916	MISCELLANEOUS SALES			49			877			926		0		0		0			49			877			926
920	SALARIES AND WAGES			40,231			12,190			52,421		0		0		0			40,231			12,190			52,421
921	OFFICE SUPPLIES AND EXPENSES			32,472			15,034			47,506		0		0		0			32,472			15,034			47,506
923	OUTSIDE SERVICES EMPLOYED			18,524			6,184			24,708		0		0		0			18,524			6,184			24,708
924	A&G PROPERTY INSURANCE			38			9			47		0		0		0			38			9			47
925	INJURIES AND DAMAGES			1,828			82			1,910		0		0		0			1,828			82			1,910
926	EMPLOYEE PENSIONS AND BENEFITS			12,090			5,346			17,436		0		0		0			12,090			5,346			17,436
928	REGULATORY COMMISSION EXPENSE			1,564			21			1,585		0		0		0			1,564			21			1,585
930.1	GENERAL ADVERTISING EXPENSES			1,401			56			1,457		0		0		0			1,401			56			1,457
930.2	MISCELLANEOUS GENERAL EXPENSES			3,437			3,566			7,003		0		0		0			3,437			3,566			7,003
931	RENTS			3,345			4,500			7,845		0		0		0			3,345			4,500			7,845
935	MAINTENANCE OF GENERAL PLANT			2,577			20			2,597		0		0		0			2,577			20			2,597
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
TOTAL EXPENSES =				177,631			62,339			239,970		0		0		0			177,631			62,339			239,970
COMPENSATION FOR USE OF EQUITY CAPITAL =
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES =							1,377			1,377		0		0		0						1,377			1,377
TOTAL COST OF SERVICE =			$	177,631		$	63,716		$	241,347		0		0		0		$	177,631		$	63,716		$	241,347

20

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION

						DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS (Dollars in Thousands)				TOTAL AMOUNT		CUSTOMER SERVICES		EMPLOYEE SERVICES		ENVIRONMENTAL		EXECUTIVE SERVICES		FINANCIAL SERVICES		GAS SUPPLY		INFORMATION SERVICES		INVESTOR REALTIONS		LAND & FACL MGMT
408		Taxes other than income taxes		7,163										1,790
414		Depreciation and amortization expense		7,472										7,354				118
416		Expense from merchandise		603				91		1		22		45		—		34		9		1
417.1		Other nonutility expenses		1,200		—		73		2		73		108				(201	)			216
426.1		Donations		1,826		1		1				7		1				7				3
426.2		Life insurance		(2,398	)									(2,398	)
426.3		Penalties		(1	)									(1	)
426.4		Civic, politic and related accounts		1,248				—										1
426.5		Other deductions		5,754		—		613		31		557		1,466		3		307		51		513
430		Interest on debt to associate companies		1,377										1,377
432		AFUDC		(69	)									(69	)
506		Operation misc steam		834														13				12
510		Maint supervision and engineering		52
511		Maint structures steam		1
512		Maint boiler plant steam		1
514		Maint Misc steam plant		24
517		Operation supervision and engineering nuclear		450		—								1				99
519		Operation coolants and water		104														69
520		Operation steam expenses nuclear		166														33
524		Operation misc nuclear		2,593				2		1				5				1,314				4
528		Maint Supervision and engineering Nuclear		38
529		Maint structures Nuclear Power		3
532		Maint misc nuclear		501										1				188				—
535		Operation supervision and engineering Hydro		1						—
537		Operation expenses hydro		31										—								12
539		Operation misc hydraulic pwr gen		96
546		Operation supervision and engineering		11
549		Operation misc other power generation		53						2								11
552		Maintenance Structures other power		1
556		System control and load		132										48				6
560		Operation supervision and engineering		6														6

21

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						DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS (Dollars in Thousands)				TOTAL AMOUNT		CUSTOMER SERVICES		EMPLOYEE SERVICES		ENVIRONMENTAL		EXECUTIVE SERVICES		FINANCIAL SERVICES		GAS SUPPLY		INFORMATION SERVICES		INVESTOR REALTIONS		LAND & FACL MGMT
561		Operation load dispatching transmission		29														5
562		Operation station expenses transmission		133														133
563		Operation OH line expenses transmission		1														1
566		Operation misc transmission		302										6				5
567		Oper rents Transmission		199
568		Maint supervision and engineering		12														2
569		Maint structures transmission		28
570		Maint station equipment transmission		201														—
571		Maint overhead lines transmission		41														38
573		Maint misc transmission		58														58
580		Distribution operation supervision and engineering		5
581		Distribution operation load dispatch		1														1
582		Distribution operation station expenses		101														92
583		Distribution operation remove and reset		3
585		Distribution operation street light and sign		10
586		Distribution operation meter expenses		6														3
588		Distribution operation misc distribution		873						3				3				512
592		Distribution maint of station equipment		56
593		Distribution maint of OH Lines		227		138		10						2				35
594		Distribution maint underground lines		35														35
595		Distribution maint underground transformers		1
596		Distribution maint street light and signal		20
597		Distribution maint meters		4
598		Distribution maint misc distribution plant		30
735		Environmental amortization and misc		839						2,100				(1,231	)							14
844		LNG-Operation		2										—				2
851		System control and load dispatch		338												327		11
853		Compressor station labor and expenses		1														—
856		Mains expense		1										—				1
857		Meas and reg station		2										—				2
863		Maint mains transmission		2														2
865		Maint meas & reg stat trans		2														2
870		Supervision and engineering natural gas distribution		2
874		Mains and services natural gas distribution		122				—										118
878		Meter and house regulator		4														2
879		Customer installation		2
880		Other expenses natural gas		352

22

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						DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS (Dollars in Thousands)				TOTAL AMOUNT		CUSTOMER SERVICES		EMPLOYEE SERVICES		ENVIRONMENTAL		EXECUTIVE SERVICES		FINANCIAL SERVICES		GAS SUPPLY		INFORMATION SERVICES		INVESTOR REALTIONS		LAND & FACL MGMT
887		Maint mains natural gas distribution		1
892		Maint services NG distribution		10										8
893		Maint meters/house regtr natural gas distribution		8
901		Supervision customer accounting		1,177		1,029
902		Meter reading		1,745		58								184				1,407				—
903		Customer records and collections		31,456		14,015		194						115		—		16,133				—
905		Miscellaneous customer accounts		2,457		1,926		—						7				332
907		Supervision customer service		266		(1	)					—		73				2				—
908		Customer assistance		1,390		19						344		—				4
909		Informational and instructional advertising		30
910		Miscellaneous customer service		13		1
911		Supervision sales activities		609		—		—														—
912		Demonstrating and selling		3,339				—						—				86
913		Advertising		87														9
916		Miscellaneous sales		926														888
920		Salaries and wages		52,421		195		5,317		982		2,993		21,650		1,658		499		592		2,127
921		Office supplies and expenses		47,506		229		2,849		762		944		4,832		379		21,102		208		1,618
923		Outside services employed		24,708		7		3,071		625		178		4,328		18		27				6,215
924		A&G Property Insurance		47										47
925		Injuries and damages		1,910				1,346						—
926		Employee pensions and benefits		17,436
928		Regulatory commission expense		1,585				34				131		121		6		—		4
930.1		General advertising expenses		1,457				1						4				—				—
930.2		Miscellaneous general expenses		7,003		4		—		3		534		52		—		1,867		537		5
931		Rents		7,845		319		691		147		805		1,588		158		217		2		512
935		Maintenance of general plant		2,597		31		1		443				15				1,179				276
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account)
		TOTAL EXPENSES =		241,347		17,971		14,294		5,102		6,588		41,532		2,549		46,817		1,403		11,528

23

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SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION

DESCRIPTION OF ITEMS (Dollars in Thousands)				LEGAL		MARKETING & SALES		OPERATIONAL SUPPORT		OVERHEAD		PROCUREMENT		PUBLIC AFFAIRS		REGULATORY		STRATEGIC PLANNING
408		Taxes other than income taxes								5,373
414		Depreciation and amortization expense
416		Expense from merchandise		52		211		138				(38	)	28		1		8
417.1		Other nonutility expenses		208		652		19				—		49		—		1
426.1		Donations				1		—				1		1,804
426.2		Life insurance
426.3		Penalties
426.4		Civic, politic and related accounts												1,247
426.5		Other deductions		987		601		12				24		556		3		30
430		Interest on debt to associate companies
432		AFUDC
506		Operation misc steam						809
510		Maint supervision and engineering																52
511		Maint structures steam						1
512		Maint boiler plant steam						—				1
514		Maint Misc steam plant						24
517		Operation supervision and engineering nuclear						350
519		Operation coolants and water						35
520		Operation steam expenses nuclear						133
524		Operation misc nuclear		13				1,247				7
528		Maint Supervision and engineering Nuclear						38
529		Maint structures Nuclear Power						3
532		Maint misc nuclear						312
535		Operation supervision and engineering Hydro						1
537		Operation expenses hydro						19
539		Operation misc hydraulic pwr gen						96
546		Operation supervision and engineering						11
549		Operation misc other power generation		—				40
552		Maintenance Structures other power						1

24

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DESCRIPTION OF ITEMS (Dollars in Thousands)				LEGAL		MARKETING & SALES		OPERATIONAL SUPPORT		OVERHEAD		PROCUREMENT		PUBLIC AFFAIRS		REGULATORY		STRATEGIC PLANNING
556		System control and load						78
560		Operation supervision and engineering						—
561		Operation load dispatching transmission						24
562		Operation station expenses transmission						—
563		Operation OH line expenses transmission						—
566		Operation misc transmission				—		291
567		Oper rents Transmission				199
568		Maint supervision and engineering						10
569		Maint structures transmission						28
570		Maint station equipment transmission						201
571		Maint overhead lines transmission						3
573		Maint misc transmission
580		Distribution operation supervision and engineering						5
581		Distribution operation load dispatch						—
582		Distribution operation station expenses						9
583		Distribution operation remove and reset						3
585		Distribution operation street light and sign						10
586		Distribution operation meter expenses						3
588		Distribution operation misc distribution						355				—
592		Distribution maint of station equipment						56
593		Distribution maint of OH Lines		—		10		32				—
594		Distribution maint underground lines
595		Distribution maint underground transformers						1
596		Distribution maint street light and signal						20
597		Distribution maint meters						4
598		Distribution maint misc distribution plant						30
735		Environmental amortization and misc		(44	)
844		LNG-Operation
851		System control and load dispatch						—
853		Compressor station labor and expenses						1
856		Mains expense
857		Meas and reg station
863		Maint mains transmission
865		Maint meas & reg stat trans						—
870		Supervision and engineering natural gas distribution						2
874		Mains and services natural gas distribution		—				4				—
878		Meter and house regulator		—		—		2
879		Customer installation				1		1

25

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DESCRIPTION OF ITEMS (Dollars in Thousands)				LEGAL		MARKETING & SALES		OPERATIONAL SUPPORT		OVERHEAD		PROCUREMENT		PUBLIC AFFAIRS		REGULATORY		STRATEGIC PLANNING
880		Other expenses natural gas				—		352						—
887		Maint mains natural gas distribution						1
892		Maint services NG distribution				2		—
893		Maint meters/house regtr natural gas distribution						8
901		Supervision customer accounting				118		30
902		Meter reading				29		67										—
903		Customer records and collections				165		834				—		—
905		Miscellaneous customer accounts				1		88				103
907		Supervision customer service				192		—
908		Customer assistance				974		49				—		—
909		Informational and instructional advertising				29		1
910		Miscellaneous customer service		—		1		11						—
911		Supervision sales activities				609
912		Demonstrating and selling				3,235		18
913		Advertising				77		1
916		Miscellaneous sales				27						11
920		Salaries and wages		6,554		1,410		1,162				2,465		2,854		748		1,215
921		Office supplies and expenses		1,863		994		8,483				417		2,340		152		334
923		Outside services employed		9,584		54		1				46		543				11
924		A&G Property Insurance
925		Injuries and damages		564
926		Employee pensions and benefits								17,436
928		Regulatory commission expense		740		2								6		507		34
930.1		General advertising expenses		2		1,414		6				4		26
930.2		Miscellaneous general expenses		1,794		407		27				272		—		5		1,496
931		Rents		819		416		1,148				49		563		151		260
935		Maintenance of general plant				—		652
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account)
		TOTAL EXPENSES =		23,136		11,831		17,401		22,809		3,362		10,016		1,567		3,441

26

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920

					DEPARTMENTAL SALARY EXPENSE INCLUDED IN AMOUNTS BILLED TO
NAME OF DEPARTMENT Indicate each department or service function. (Dollars in Thousands)														NUMBER PERSONNEL END OF YEAR
		TOTAL AMOUNT			PARENT COMPANY			OTHER ASSOCIATES			NON ASSOCIATES
Customer Services		$	194		$	—		$	194		$	—		262
Employee Services			5,317			—			5,317			—		138
Environmental			982			—			982			—		25
Executive Services			2,993			—			2,993			—		24
Financial Services			21,651			—			21,651			—		209
Gas Supply			1,658			—			1,658			—		27
Information Services			499			—			499			—		431
Investor Relations			592			—			592			—		13
Land and Facilities Management			2,127			—			2,127			—		100
Legal			6,555			11			6,544			—		103
Marketing & Sales			1,410			—			1,410			—		87
Operational Support			1,162			—			1,162			—		23
Procurement			2,465			—			2,465			—		58
Public Affairs			2,853			—			2,853			—		43
Regulatory			748			—			748			—		16
Strategic Planning			1,215			—			1,215			—		18
TOTAL		$	52,421		$	11		$	52,410		$	—		1,577

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(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 $28 million, are not reflected in the above billed amounts. Additionally, approximately $17 million 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.

27

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OUTSIDE SERVICES EMPLOYED
ACCOUNT 923

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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		$	2,359
	Deloitte Tax, LLP				NA			29
	Public Company Accounting Oversight Board				NA			28
								2,416
Banking Services and Maintenance:
	Bank of America				NA			348
	J P Morgan Chase Bank				NA			188
	Selkirk Financial Technologies				NA			59
	The Bank of New York				NA			88
	Winters and Co LLC				NA			44
								727
Payroll/Benefits Administration & Maintenance:
	Towers Perrin Forster & Crosby				NA			491
Construction Mgmt & Oversight/Environmental
	Alltech Wiring				NA			126
	Honeywell International				NA			41
	Management and Technical Resources				NA			152
								319
Permanent Contractor Support
	Spherion Corporation				NA			121
Consulting:
	AON Consulting, Inc.				NA			357
	Cambridge Energy Research Allociates, Inc.				NA			30
	Corporate Executive Board				NA			64
	Ernst & Young, LLP				NA			47
	FreeMarkets				NA			36
	Galway Group LP				NA			260
	Gannett Fleming, Inc.				NA			77
	Harvest Talent Inc.				NA			35
	Hewitt Associates LLC				NA			111
	Korn/Ferry International				NA			120
	Lukens Energy Group Inc				NA			45
	Melissa Hubbard				NA			33
	Price Waterhouse Coopers, LLP				NA			41
	The Benefit Advocates, Inc.				NA			118
	The Porter Hamel Group, Inc.				NA			32
	The Segal Company				NA			253
	Van Rickland Clary, CDP				NA			61
								1,720

28

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Employment Services:
	Mind Your Business				NA			37
Advertising Services:
	O'Cain Advertising				NA			27
Environmental Services:
	Nu-Way Industrial Services LLC				NA			51
	TRC Environmental Corp				NA			264
								315
Insurance Services:
	Key Risk Management Services, Inc.				NA			87
	SC Workers Compensation Commission				NA			53
	South Carolina Second Injury Fund				NA			360
								500
Legal Services:
	A. H. Gibbes				NA			168
	A. Parker Barnes Jr. & Associates				NA			58
	Alston & Bird LLP				NA			81
	Belton T. Zeigler				NA			191
	Bracewell and Patterson, LLP				NA			322
	Bruder Gentile Legal Service				NA			668
	Cameron McKenna LLP				NA			68
	Cranfill, Sumner, & Hartzog, LLP				NA			73
	Galloway and Lyndall LLP				NA			288
	Gatewood Skipper & Rambo PC				NA			42
	Haynsworth Baldwin Johnson & Greaves				NA			81
	Haynsworth Sinkler Boyd, PA				NA			429
	Hobbs & Associates, Inc.				NA			366
	Holcomb & Fletcher, PLLC				NA			50
	Hunton & Williams				NA			62
	J. A. Wright & Associates. Inc.				NA			706
	Jenner and Block, LLP				NA			246
	Jones Day				NA			902
	Jones Day Reavis, & Pogue				NA			50
	King and Spaulding				NA			424
	McDermott, Will & Emery				NA			460
	McDonald McKenzie Rubin Miller & Lybrand				NA			56
	McNair Law Firm				NA			404
	Moore and Van Allen				NA			467
	Nelson Mullins Riley & Scarborough				NA			212
	Ogletree, Deakins, Nash, Smoak & Stewart,PC				NA			305
	Palmetto Law Firm PA				NA			37
	Patricia T Smith				NA			319
	Pennington & Lott LLP				NA			95
	Richardson & Birdsong				NA			65
	Riley, Pope, and LA				NA			62

29

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	Smith Debnam Narron Wyche Story & Myers				NA			30
	Smith, Galloway, Lyndall & Fuchs, LLP				NA			52
	Stacey M Jenkins PA				NA			35
	Thompson Carburn, LLP				NA			36
	Troutman Sanders LLP				NA			28
	Willoughby & Hoefer PA				NA			809
	Wills & Massalon, LLC				NA			62
	Womble, Carlyle, Sandridge, & Rice PLLC				NA			211
	Winston & Strawn				NA			57
								9,077
Misc Bank Card Purchases:
	US Bank				NA			254
Rating Services:
	Moody's Investor				NA			226
	Standard & Poors				NA			257
								483
Storm Recovery Support:
	Dupree				NA			120
	Seafood Hut				NA			54
	Seawell's Food Catering, Inc.				NA			27
	Shealy's Barbeque House, Inc.				NA			61
	Southern Pride Catering				NA			66
	Sticky Fingers				NA			106
								434
Security Services:
	Coastal Burglar Alarm				NA			37
	Coastal International				NA			5,704
	Informat, Inc.				NA			30
	Legends Security & Sound, Inc.				NA			38
	MS Joint Venture				NA			27
	Security Services				NA			82
	Shred First LLC				NA			98
								6,016
Training Services:
	McCrady Training Center							63
All Others less than $25,000 (426 Items)					NA			1,708
TOTAL							$	24,708

30

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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.

31

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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)
Bill Inserts		The R. L. Bryan Company		$	6
		Other			2
					8
Brand/ Image Advertising		Direct Mailing Service Inc			8
		George Fulton Photography			10
		Jeff Amberg Photography			11
		The R. L. Bryan Company			32
		Other			4
					65
Event/Program Sponsorship		Best of Broadway			5
		City of Charleston (for Project Cool Breeze)			5
		Crowson-Stone			4
		Geiger O'Cain (for Energetic Minds Program)			12
		Others—Net			14
					40
Job Advertisements		TMP Worldwide			27
Minority Advertising		Black Pages USA			54
		Minority Business Entrepreneur			4
					58
Posters, Bulletins, Booklets, & other promotional items		Adams Outdoor Advertising			8
		Geiger O'Cain			23
		Others—Net			7
					38
TV/Radio/Print Media Advertising		The Aiken Standard			3
		EMI Network			11
		Greater Columbia Chamber of Commerce			7
		McRae Communications, Inc.			980
		The State Newspaper			24
		WACH TV			25
		WCSC Inc.			39
		Others—Net			47
					1,136
Weatherline Service Advertising		Weatherline, Inc			38
Other		Net—Others			47
		TOTAL		$	1,457

32

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (in Thousands)
Industry association dues			$	1,563
Carolina Virginia Nuclear Power Association Dismantling Assessment				500
Board of Directors expenses				1,194
Computer resource usage expenses				1,882
Postage				148
Computer Hardware/Software Maintenance & Purchases				254
Office of Corporate Secretary				548
Telephone Resource Usage				38
Shareholders Services expenses				437
Marketing research/Information				361
Liability insurance				12
Education/Travel related expenses				16
Miscellaneous Printing Costs				7
Other Club Dues				11
Other miscellaneous expenses				32
	TOTAL		$	7,003

33

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (in Thousands)
Office space		$	6,714
Use of Subsidiary owned Assets			155
Computer equipment			972
Other equipment rent			4
TOTAL		$	7,845

34

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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TAXES OTHER THAN INCOME TAXES
ACCOUNT 408

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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 (in Thousands)
Other than U. S. Government Taxes:
	Business License Fees/Prop Tax		$	1,790
	State Unemployment Tax			168
				1,958
U. S. Government Taxes:
	Social Security and Medicare Tax			5,137
	Federal Unemployment Tax			68
				5,205
TOTAL			$	7,163

35

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (in Thousands)
Aiken Center for the Arts		Corporate Contribution			15
Aiken/Barnwell/Lexington CAC, Inc		Corporate Contribution			17
American Cancer Society		Corporate Contribution			4
American Heart Association		Corporate Contribution			18
American Red Cross		Corporate Contribution			37
Beaufort Memorial Hospital Foundation		Corporate Contribution			12
Benedict College		Corporate Contribution			10
Boy Scouts of America		Corporate Contribution			4
Boys & Girls Club of the Lowcountry, Inc.		Corporate Contribution			4
Boys & Girls Club of the Midlands, Inc.		Corporate Contribution			4
Brookgreen Gardens		Corporate Contribution			16
Capital City/Lake Murray Country		Corporate Contribution			5
Carolinas Minority Supplier Development Councils, Inc.		Corporate Contribution			5
Charleston County Human Services Comm		Corporate Contribution			17
Charleston Habitat for Humanity		Corporate Contribution			45
Charleston Metro Chamber of Commerce		Corporate Contribution			5
Charleston Stage Company		Corporate Contribution			8
Children in Crisis Dorchester County		Corporate Contribution			10
Children's Museum of the Low Country		Corporate Contribution			42
City of Charleston		Corporate Contribution			20
Claflin University		Corporate Contribution			8
Clemson University Foundation		Corporate Contribution			3
Columbia City Ballet		Corporate Contribution			70
Columbia Urban League		Corporate Contribution			25
Communities in Schools of Charleston		Corporate Contribution			5
Communities in Schools of Columbia		Corporate Contribution			5
Communities in Schools of SC		Corporate Contribution			5
Cultural Council of Richland & Lexington County		Corporate Contribution			21
Edventure Inc.		Corporate Contribution			20
Elloree Heritage Museum & Cultural Center		Corporate Contribution			5
Fairfield Behavioral Health Services		Corporate Contribution			15
First Steps		Corporate Contribution			100
Five Points Association		Corporate Contribution			8
Futures For Kids		Corporate Contribution			10
Girl Scouts		Corporate Contribution			4
Greater Summerville-Dorchester Counties Chamber of Commerce		Corporate Contribution			5
Harry Hampton Memorial Wildlife Fund		Corporate Contribution			15
Health Sciences Foundation of MUSC		Corporate Contribution			51

36

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Healthy Learners		Corporate Contribution			5
Indian Waters Council Boy Scouts of America		Corporate Contribution			6
Junior Achievement		Corporate Contribution			24
Juvenile Diabetes Foundation		Corporate Contribution			8
March of Dimes		Corporate Contribution			11
Midlands Technical College		Corporate Contribution			25
North Augusta Chamber of Commerce		Corporate Contribution			4
North Port Wentworth Citizens Council		Corporate Contribution			5
Orangeburg Calhoun Tech Foundation		Corporate Contribution			30
Palmetto Capital City Classic		Corporate Contribution			10
Palmetto Health Foundation		Corporate Contribution			5
Presbyterian College		Corporate Contribution			8
Prevent Child Abuse South Carolina		Corporate Contribution			5
Ronald McDonald House		Corporate Contribution			7
Rotary Clubs		Corporate Contribution			4
SC Chamber of Commerce		Corporate Contribution			205
SC Council on Economic Education		Corporate Contribution			3
SCE&G Employee Good Neighbor Fund		Corporate Contribution			20
South Carolina Independent Colleges & Universities		Corporate Contribution			16
South Carolina Law Enforcement Officers Association		Corporate Contribution			5
South Carolina Philharmonic Orchestra		Corporate Contribution			11
SC State Conference NAACP		Corporate Contribution			4
South Carolina Aquarium		Corporate Contribution			20
South Carolina Center for Birds of Prey		Corporate Contribution			50
South Carolina Artisans Center		Corporate Contribution			15
South Carolina Waterfowl Association		Corporate Contribution			10
Southeastern Firefighters Burn Foundation		Corporate Contribution			5
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
Trident County Technical College		Corporate Contribution			20
Trident United Way		Corporate Contribution			81
United Way of Midlands		Corporate Contribution			203
University of South Carolina System		Corporate Contribution			15
USC Educational Foundation		Corporate Contribution			11
USS Yorktown Association, Inc.		Corporate Contribution			5
Wateree Community Actions		Corporate Contribution			17
Others less than $3,000 (246 items)		Corporate Contribution			220
		TOTAL		$	1,826

37

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

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 (in Thousands)
Miscellaneous non-operating labor and benefits				$	1,673
Miscellaneous Materials & Supplies					54
Vehicle/Aircraft expenses					95
Facility maintenance					85
Travel and meal expenses					57
Memberships and other club dues					124
Leases & Rentals					157
Auditing Fees					40
Computer resources					241
Land and Forest Management Services					118
Advertising Expenses					231
Legal Consulting					733
Compensation and Benefits Consulting					50
Physical Security Services					32
Credit & Collections expenses					32
E-Business Support expenses					17
Ramsey Grove Maintenance and expenses					105
Gas Supply expenses					30
Telecommunications expenses					71
Public and Governmental Affairs Support					108
Investor Relations/Shareholder Services					28
Treasury Services expenses					23
Event Sponsorship					149
Corporate Secretary expenses					66
Key Employee Retention Program					1,118
Creative Services expenses					84
Other					233
TOTAL				$	5,754

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ANNUAL REPORT OF SCANA Services, Inc.

For the Year Ended December 31, 2004

SCHEDULE XVIII
NOTES TO STATEMENTS OF OPERATIONS

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 15.

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ANNUAL REPORT OF SCANA Services, Inc.

Organization Chart

Chairman, President, Chief Executive Officer and Chief Operating Officer

Senior Vice President and Chief Financial Officer

Senior Vice President, General Counsel and Assistant Secretary

Senior Vice President Fuel Procurement and Asset Management and Procurement

Senior Vice President Generation, Nuclear and Fossil Hydro

Executive for Electric and Natural Gas Operations

Executive for Natural Gas Distribution and Telecommunications

Senior Vice President for Human Resources

Officer for Corporate Compliance and Internal Auditing

Senior Vice President of Governmental Affairs and Economic Development

Senior Vice President for Pipeline Operations

Senior Vice President for Marketing and Communications

Vice President—Finance

Secretary

Treasurer

Controller

Risk Management Officer

Chief Information Officer

Assistant Secretary

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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, differs from the amount

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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.

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        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 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

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margin revenues of all the applicable Client Entities. This ratio will be evaluated 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.

        3.     Number of Customers Ratio—A ratio based on the number of customers for each business entity. 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,

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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.

        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 21, 2005

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QuickLinks

ANNUAL REPORT OF SCANA Services, Inc.
SCHEDULE I—COMPARATIVE BALANCE SHEETS Give balance sheet of the Company as of December 31 of the current and prior year
SCHEDULE I—COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year
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 STATEMENTS OF OPERATIONS
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
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
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2004 OTHER DEDUCTIONS ACCOUNT 426.5
SCHEDULE XVIII NOTES TO STATEMENTS OF OPERATIONS
EXHIBIT I Description of Services, Cost Accumulation, Assignment and Allocation Methodologies for SCANA Services, Inc.
EXHIBIT II FORM OF INITIAL SERVICE REQUEST
ANNUAL REPORT OF SCANA Services, Inc.
ANNUAL REPORT OF SCANA Services, Inc. Signature Clause