This excerpt taken from the SO 10-K filed Feb 27, 2007.
During 2006, the Company issued $200 million of 30-year unsecured long-term senior notes. The proceeds of the issuance were used to repay a portion of the Companys outstanding short-term indebtedness and for other general corporate purposes, including the Companys continuous construction program. In conjunction with issuing the securities, the Company terminated $200 million in interest swaps at a cost of $8.1 million. This cost will be amortized over a 10-year period.
The issuance of all securities by the Company is generally subject to regulatory approval by the FERC. Additionally, with respect to the public offering of securities, the Company files registration statements with the SEC under the Securities Act of 1933, as amended (1933 Act). The amounts of securities authorized by the FERC, as well as the amounts registered under the 1933 Act, are continuously monitored and appropriate filings are made to ensure flexibility in the capital markets.