Schedule III – Electric Plant and Accumulated Depreciation

12 Months Ended

Dec. 31, 2016

InfraREIT, Inc.

SCHEDULE III – ELECTRIC PLANT AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2016

(In thousands)

Description (1)	Encumbrances		Initial Cost to Company (2)		Cost Subsequent to Acquisition				Gross Amount Carried at Period Close (3)		Accumulated Depreciation			Date of Construction (4)	Date Acquired	Depreciation Life in Latest Income Statements is Computed (5)
			Electric Plant		Improvements		Carrying Cost		Electric Plant Total
S/B/C assets	$	391,736	$	901,636	$	—	$	—	$	901,636	$	(134,121	)	(4)	(4)	(5)
McAllen assets		67,242		157,124		—		—		157,124		(25,379	)	(4)	(4)	(5)
CREZ assets		329,680		685,954		—		—		685,954		(40,023	)	(4)	(4)	(5)
Stanton Transmission Loop assets		16,578		92,318		—		—		92,318		(59,837	)	(4)	(4)	(5)
ERCOT Transmission assets		32,230		64,928		—		—		64,928		(1,780	)	(4)	(4)	(5)

(1)	Asset descriptions correspond to asset groups under individual leases.

(2)	Because the Company’s assets consist entirely of electric plant assets, which are regulated by the PUCT, electric plant is stated at original cost, which includes cost of contracted services, direct labor, materials, acquisition adjustments, capitalized interest and overhead items.

(3)	See reconciliation on next page.

(4)	Because additions and improvements to the T&D assets are ongoing, construction and acquisition dates are not applicable.

(5)	Provision for depreciation of electric plant is computed using straight-lines rates as follows:

InfraREIT, Inc.

SCHEDULE III – ELECTRIC PLANT AND ACCUMULATED DEPRECIATION

FIXED ASSET RECONCILATION

(In thousands)

(1)	Retirements are shown net of the accumulated depreciation related to the assets that were classified as electric plant held for future use and placed in service as transmission assets during August 2015.