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OTHER DEFERRED CHARGES
3 Months Ended
Mar. 31, 2020
OTHER DEFERRED CHARGES.  
OTHER DEFERRED CHARGES

NOTE 7 – OTHER DEFERRED CHARGES  

 

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

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

 

    

2020

    

2019

 

Preliminary surveys and investigations

 

$

22,167

 

$

21,261

 

Advances to operating agents of jointly owned facilities

 

 

10,197

 

 

3,917

 

Operating lease right-of-use assets

 

 

8,327

 

 

7,622

 

Other

 

 

15,431

 

 

9,872

 

Total other deferred charges

 

$

56,122

 

$

42,672

 

 

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 or the expense could be deferred as a regulatory asset to be recovered from our Utility Members through rates subject to approval by our Board and FERC.

 

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.

 

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.