NOTE 7 – OTHER DEFERRED CHARGES

The following other deferred charges are reflected on our consolidated statements of financial position (dollars in thousands):


	September 30,		December 31,
	2019		2018
Preliminary surveys and investigations	$	22,214	$	20,660
Advances to operating agents of jointly owned facilities		19,662		13,161
Interest rate swap		—		8,576
Operating lease right-of-use assets		3,798		—
Other		4,254		4,056
Total other deferred charges	$	49,928	$	46,453

We make expenditures for preliminary surveys and investigations for the purpose of determining the feasibility of contemplated generation and transmission projects. If construction results, the preliminary survey and investigation expenditures will be reclassified to electric plant ‑ construction work in progress. If the work is abandoned, the related preliminary survey and investigation expenditures will be charged to the appropriate operating expense account. The expense could be deferred as a regulatory asset to be recovered from our Members in rates subject to approval by the applicable authority.

We make advance payments to the operating agents of jointly owned facilities to fund our share of costs expected to be incurred under each project including MBPP – Laramie River Station, and Yampa Project – Craig Generating Station Units 1 and 2. We also make advance payments to the operating agent of Springerville Unit 3.

In 2016, we entered into a forward starting interest rate swap to hedge a portion of our future long-term debt interest rate exposure. The unrealized gain on this interest rate swap of $8.6 million as of December 31, 2018 was deferred in accordance with the accounting requirements related to regulated operations. See Note 2 – Accounting for Rate Regulation. This interest rate swap was terminated in June 2019 with no gain or loss being realized.

A right-of-use asset represents a lessee’s right to control the use of the underlying asset for the lease term. Right-of-use assets are included in other deferred charges and presented net of accumulated amortization. See Note 15 – Leases.