SECURITIES AND EXCHANGE COMMISSION

                       WASHINGTON, D. C.  20549



                               FORM 8-K



                            CURRENT REPORT

                PURSUANT TO SECTION 13 OR 15(d) OF THE

                    SECURITIES EXCHANGE ACT OF 1934

Date of Report:  December 15, 1998


                South Carolina Electric & Gas Company
        (Exact name of registrant as specified in its charter)



        South Carolina            1-3375               57-0248695
(State or other jurisdiction    (Commission          (IRS Employer
  of incorporation)              File Number)     Identification No.)



1426 Main Street, Columbia, South Carolina                   29201
(Address of principal executive offices)                   (Zip Code)



Registrant's telephone number, including area code (803) 217-9000




     (Former name or former address, if changed since last report.)



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                     South Carolina Electric & Gas Company

Item 5.     Other Events.


        On December 11, 1998,  The Public  Service  Commission of South Carolina
(Commission)  issued an Order  requiring the Company to reduce  retail  electric
rates on a prospective  basis.  The Commission  acted in response to the Company
reporting  that it earned a 13.04 percent return on common equity for its retail
electric  operations for the twelve months ended September 30, 1998. This return
on common equity exceeded the Company's authorized return on common equity of 12
percent  by  1.04  percent,   or  $22.7  million,   primarily  as  a  result  of
record-breaking   heat  experienced   during  the  summer.  The  Order  requires
prospective rate reductions on a per kilowatt-hour basis, based on actual retail
sales for the 12 months  ended  September  30,  1998.  This  action  reduces the
reported  return on common equity for the 12 months ended  September 30, 1998 to
the  Commission-authorized  level.  The Order requires the rate reductions to be
placed into effect with the first billing cycle of January 1999.

        The Order also  requires the  Commission  Staff to review the  Company's
earnings for the twelve month  period  ended  September  30, 1998 and report any
other potential  ratepayer  savings to the Commission within 30 days of the date
of the Order.

        The Company has not yet filed a response.




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                   South Carolina Electric & Gas Company


                                SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                             SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                        (Registrant)




December 15, 1998                      By: s/M. R. Cannon
                                           M. R. Cannon






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                   SOUTH CAROLINA ELECTRIC & GAS COMPANY
                                EXHIBIT INDEX
Number
    1. Underwriting Agreement
       Not Applicable

    2. Plan of Acquisition, Reorganization, Arrangement,
       Liquidation or Succession
       Not Applicable

    4. Instruments Defining the Rights of Security
       Holders, Including Indentures
       Not Applicable

   16. Letter Re Change in Certifying Accountant
       Not Applicable

   17. Letter Re Director Resignation
       Not Applicable

   20. Other Documents or Statements to Security Holders
       Not Applicable

   23. Consents of Experts and Counsel
       Not Applicable

   24. Power of Attorney
       Not Applicable

   27. Financial Data Schedule
       Not Applicable

   99. Additional Exhibits
       Not Applicable




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