InfraREIT (HIFR) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	HIFR
Entity Registrant Name	InfraREIT, Inc.
Entity Central Index Key	1,506,401
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,778,490

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 2,617	$ 17,612
Restricted cash	1,682	1,682
Due from affiliates	27,058	32,554
Inventory	7,229	7,276
Prepaids and other current assets	1,447	726
Total current assets	40,033	59,850
Electric Plant, net	1,675,221	1,640,820
Goodwill	138,384	138,384
Other Assets	36,650	37,646
Total Assets	1,890,288	1,876,700
Current Liabilities
Accounts payable and accrued liabilities	29,124	37,372
Short-term borrowings	162,000	137,500
Current portion of long-term debt	7,960	7,849
Dividends and distributions payable	15,169	15,161
Accrued taxes	4,659	4,415
Total current liabilities	218,912	202,297
Long-Term Debt, Less Deferred Financing Costs	707,464	709,488
Regulatory Liability	24,013	21,004
Total liabilities	950,389	932,789
Commitments and Contingencies
Equity
Common stock, $0.01 par value; 450,000,000 shares authorized; 43,775,383 and 43,772,283 issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	438	438
Additional paid-in capital	705,900	705,845
Accumulated deficit	(21,238)	(18,243)
Total InfraREIT, Inc. equity	685,100	688,040
Noncontrolling interest	254,799	255,871
Total equity	939,899	943,911
Total Liabilities and Equity	$ 1,890,288	$ 1,876,700

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	43,775,383	43,772,283
Common stock, shares, outstanding	43,775,383	43,772,283

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Lease revenue	$ 39,624	$ 33,665
Operating costs and expenses
General and administrative expense	5,981	5,545
Depreciation	12,687	11,074
Total operating costs and expenses	18,668	16,619
Income from operations	20,956	17,046
Other (expense) income
Interest expense, net	(9,698)	(8,842)
Other income, net	3	759
Total other expense	(9,695)	(8,083)
Income before income taxes	11,261	8,963
Income tax expense	244	186
Net income	11,017	8,777
Less: Net income attributable to noncontrolling interest	3,068	2,462
Net income attributable to InfraREIT, Inc.	$ 7,949	$ 6,315
Net income attributable to InfraREIT, Inc. common stockholders per share:
Basic	$ 0.18	$ 0.14
Diluted	0.18	0.14
Cash dividends declared per common share	$ 0.25	$ 0.25

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income	$ 11,017	$ 8,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	12,687	11,074
Amortization of deferred financing costs	1,004	1,003
Allowance for funds used during construction - other funds		(759)
Equity based compensation	140	292
Changes in assets and liabilities:
Due from affiliates	5,496	5,638
Inventory	47	(143)
Prepaids and other current assets	(721)	(829)
Accounts payable and accrued liabilities	140	7,487
Net cash provided by operating activities	29,810	32,540
Cash flows from investing activities
Additions to electric plant	(52,223)	(58,495)
Net cash used in investing activities	(52,223)	(58,495)
Cash flows from financing activities
Proceeds from short-term borrowings	34,000
Repayments of short-term borrowings	(9,500)	(54,000)
Proceeds from borrowings of long-term debt		100,000
Repayments of long-term debt	(1,921)	(1,817)
Deferred financing costs		(649)
Dividends and distributions paid	(15,161)	(13,634)
Net cash provided by financing activities	7,418	29,900
Net (decrease) increase in cash and cash equivalents	(14,995)	3,945
Cash and cash equivalents at beginning of period	17,612	9,471
Cash and cash equivalents at end of period	$ 2,617	$ 13,416

Description of Business and Pre

Description of Business and Presentation of Financial Statements	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Presentation of Financial Statements	1. Description of Business and Presentation of Financial Statements Basis of Presentation InfraREIT, Inc. is a Maryland corporation, which may be referred to in these financial statements as the “Company,” “we,” “us” and “our.” These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2017. We held 72.1% of the outstanding partnership units (OP Units) in InfraREIT Partners, LP (Operating Partnership or InfraREIT LP) as of March 31, 2017 and are its general partner. We include the accounts of the Operating Partnership and its subsidiaries in our consolidated financial statements. Hunt Consolidated, Inc. (HCI) affiliates, current or former employees and members of our board of directors held the other 27.9% of the outstanding OP Units as of March 31, 2017. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Guidance Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 203): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	2 . Related Party Transactions Our subsidiary, Sharyland Distribution & Transmission Services, L.L.C. (SDTS), leases all our electric transmission and distribution assets (T&D assets) through several lease agreements to Sharyland Utilities, L.P. (Sharyland), a Texas based utility and our sole tenant. Under the leases, we have agreed to fund capital expenditures for footprint projects. Our leases define “footprint projects” to be transmission or distribution projects primarily situated within our distribution service territory, or that physically hang from our existing transmission assets or that are physically located within one of our substations. We earned lease revenues from Sharyland under these agreements of $39.6 million and $33.7 million during the three months ended March 31, 2017 and 2016, respectively. In connection with our leases with Sharyland, we recorded a deferred rent liability of $16.5 million and $15.6 million as of March 31, 2017 and December 31, 2016, respectively, which is included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. In addition to rent payments that Sharyland makes to us, we and Sharyland also make payments to each other under the leases that primarily consist of payments to reimburse Sharyland for the costs of gross plant and equipment added to our T&D assets. For the three months ended March 31, 2017 and 2016, the net amount of payments we made to Sharyland was $52.2 million and $58.2 million, respectively. As of March 31, 2017 and December 31, 2016, accounts payable and accrued liabilities on the Consolidated Balance Sheets included $4.8 million and $13.7 million, respectively, related to amounts owed to Sharyland. As of March 31, 2017 and December 31, 2016, amounts due from affiliates on the Consolidated Balance Sheets included $27.1 million and $32.6 million, respectively, related to amounts owed by Sharyland associated with our leases. The management fee paid to Hunt Utility Services, LLC (Hunt Manager) for the three months ended March 31, 2017 and 2016 was $7.0 million and $3.3 million, respectively. As of December 31, 2016, there was $3.5 million accrued associated with management fees on the Consolidated Balance Sheets. There were no prepaid or accrued amounts associated with the management fees on the Consolidated Balance Sheets as of March 31, 2017. Additionally, during each of the three months ended March 31, 2017 and 2016, we paid Hunt Manager less than $0.1 million for reimbursement of annual software license and maintenance fees and other expenses in accordance with our management agreement. Our management agreement with Hunt Manager provided for an annual base fee, or management fee, of $13.1 million from April 1, 2015 through March 31, 2016. Effective as of April 1, 2016, the annual base fee was automatically adjusted to $14.0 million annually through March 31, 2017. Effective as of April 1, 2017, the annual base fee was automatically adjusted to $14.2 million annually through March 31, 2018. The base fee for each twelve month period beginning each April 1 thereafter will equal 1.50% of our total equity as of December 31 of the immediately preceding year, subject to a $30.0 million cap. The term of the management agreement expires December 31, 2019, and will automatically renew for successive five year terms unless a majority of our independent directors decides to terminate the agreement.

Electric Plant and Depreciation

Electric Plant and Depreciation	3 Months Ended
	Mar. 31, 2017
Public Utilities Property Plant And Equipment [Abstract]
Electric Plant and Depreciation	3. Electric Plant and Depreciation The major classes of electric plant are as follows: (In thousands) March 31, 2017 December 31, 2016 Electric plant: Transmission plant $ 1,222,769 $ 1,203,164 Distribution plant 597,707 575,648 General plant 15,958 15,959 Total plant in service 1,836,434 1,794,771 Construction work in progress 107,900 107,189 Total electric plant 1,944,334 1,901,960 Accumulated depreciation (269,113 ) (261,140 ) Electric plant, net $ 1,675,221 $ 1,640,820 General plant consists primarily of a warehouse, buildings and associated assets. Construction work in progress (CWIP) relates to various transmission and distribution projects underway. The amounts of CWIP consist primarily of route development expenditures, labor and materials expenditures, right of way acquisitions, engineering services and legal fees. Electric plant, net includes plant acquisition adjustments of $27.4 million and $27.7 million as of March 31, 2017 and December 31, 2016, respectively.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	4. Goodwill Goodwill represents the excess of costs of an acquired business over the fair value of the assets acquired, less liabilities assumed. We conduct an impairment test of goodwill at least annually. As of March 31, 2017 and December 31, 2016, $138.4 million was recorded as goodwill on the Consolidated Balance Sheets.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Other Assets	5. Other Assets Other assets are as follows: March 31, 2017 December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Deferred financing costs on undrawn revolver $ 967 $ (446 ) $ 521 $ 967 $ (397 ) $ 570 Other regulatory assets: Deferred financing costs 27,761 (17,944 ) 9,817 27,761 (16,997 ) 10,764 Deferred costs recoverable in future years 23,793 — 23,793 23,793 — 23,793 Other regulatory assets 51,554 (17,944 ) 33,610 51,554 (16,997 ) 34,557 Investments 2,519 — 2,519 2,519 — 2,519 Other assets $ 55,040 $ (18,390 ) $ 36,650 $ 55,040 $ (17,394 ) $ 37,646 Deferred financing costs on undrawn revolver consist of costs incurred in connection with the establishment of the InfraREIT LP revolving credit facility, see Note 6, Borrowings Under Credit Facilities Other regulatory assets consist of deferred financing costs within our regulated subsidiary, SDTS. The deferred financing costs primarily consist of debt issuance costs incurred in connection with the construction of our T&D assets or the refinancing of related debt. See Note 6, Borrowings Under Credit Facilities Long-Term Debt Deferred costs recoverable in future years of $23.8 million as of March 31, 2017 and December 31, 2016 represent operating costs incurred from inception of Sharyland through 2007. Recovery of these costs has been requested in the amended rate case application and rate filing packages filed with the Public Utility Commission of Texas (PUCT) by Sharyland and SDTS on December 30, 2016 (December Rate Case Filing). We have determined that these costs are probable of recovery through future rates based on orders of the PUCT in Sharyland’s prior rate cases and regulatory precedent. See Note 9, Regulatory Matters In connection with the acquisition of Cap Rock Holding Corporation, we received a participation in the National Rural Cooperative Corporation (NRUCFC). We account for this investment under the cost method of accounting. We believe that the investment is not impaired at March 31, 2017 and December 31, 2016.

Borrowings Under Credit Facilit

Borrowings Under Credit Facilities	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Borrowings Under Credit Facilities	6. Borrowings Under Credit Facilities InfraREIT LP Revolving Credit Facility In 2014, InfraREIT LP entered into a $75.0 million revolving credit facility, led by Bank of America, N.A., as administrative agent, with up to $15.0 million available for issuance of letters of credit and a maturity date of December 10, 2019. The revolving credit facility is secured by certain assets of InfraREIT LP, including accounts and other personal property, and is guaranteed by us and Transmission and Distribution Company, L.L.C. (TDC), with the TDC guarantee secured by the assets of, and InfraREIT LP’s equity interests in, TDC on materially the same basis as TDC’s senior secured notes described below in Note 7, Long-Term Debt Borrowings and other extensions of credit under the revolving credit facility bear interest, at InfraREIT LP’s election, at a rate equal to (1) the one, two, three or six month London Interbank Offered Rate (LIBOR) plus 2.5%, or (2) a base rate (equal to the highest of (a) the Federal Funds Rate plus ½ of 1%, (b) the Bank of America prime rate and (c) LIBOR plus 1%) plus 1.5%. Letters of credit are subject to a letter of credit fee equal to the daily amount available to be drawn times 2.5%. InfraREIT LP is also required to pay a commitment fee and other customary fees under the revolving credit facility. InfraREIT LP may prepay amounts outstanding under the revolving credit facility in whole or in part without premium or penalty. As of March 31, 2017 and December 31, 2016, there were no borrowings or letters of credit outstanding and there was $75.0 million of borrowing capacity available under the revolving credit facility. As of March 31, 2017 and December 31, 2016, InfraREIT LP was in compliance with all debt covenants under the credit agreement. SDTS Revolving Credit Facility In 2014, SDTS entered into the third amended and restated credit agreement led by Royal Bank of Canada, as administrative agent, with a maturity date of December 10, 2019. The credit agreement contains a revolving credit facility with a borrowing capacity up to $250.0 million with up to $25.0 million of the revolving credit facility available for issuance of letters of credit and up to $5.0 million of the revolving credit facility available for swingline loans. The revolving credit facility is secured by SDTS’s T&D assets, the leases, certain accounts and TDC’s equity interests in SDTS on the same basis as SDTS’s various senior secured note obligations described below in Note 7, Long-Term Debt The interest rate for the revolving credit facility is based, at SDTS’s option, at a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus ½ of 1% and (c) LIBOR plus 1.00% per annum, plus a margin of either 0.75% or 1.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis or (2) the one, two, three or six month LIBOR plus a margin of either 1.75% or 2.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis. SDTS is also required to pay a commitment fee and other customary fees under its revolving credit facility. SDTS is entitled to prepay amounts outstanding under the revolving credit facility with no prepayment penalty. As of March 31, 2017, SDTS had $162.0 million of borrowings outstanding at a weighted average interest rate of 2.72%, no letters of credit outstanding and $88.0 million of borrowing capacity available under this revolving credit facility. As of December 31, 2016, SDTS had $137.5 million of borrowings outstanding at a weighted average interest rate of 2.50% with no letters of credit outstanding and $112.5 million of borrowing capacity available under this revolving credit facility. As of March 31, 2017 and December 31, 2016, SDTS was in compliance with all debt covenants under the credit agreement. The credit agreements require InfraREIT LP and SDTS to comply with customary covenants for facilities of this type, including: debt to capitalization ratios, debt service coverage ratios, limitations on additional debt, liens, investments, mergers, acquisitions, dispositions or entry into any line of business other than the business of the transmission and distribution of electric power and the provision of ancillary services and certain restrictions on the payment of dividends. The debt to capitalization ratio on the SDTS credit facility is calculated on a combined basis with Sharyland. The credit agreements also contain restrictions on the amount of Sharyland’s indebtedness and other restrictions on, and covenants applicable to, Sharyland. The revolving credit facilities of InfraREIT LP and SDTS are subject to customary events of default. If an event of default occurs under either facility and is continuing, the lenders may accelerate amounts due under such revolving credit facility.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Long-Term Debt	7. Long-Term Debt Long-term debt consisted of the following: March 31, 2017 December 31, 2016 (In thousands) Maturity Date Amount Outstanding Interest Rate Amount Outstanding Interest Rate TDC Senior secured notes - $25.0 million December 30, 2020 $ 17,188 8.50% $ 17,500 8.50% SDTS Senior secured notes - $60.0 million June 20, 2018 60,000 5.04% 60,000 5.04% Senior secured notes - $400.0 million December 3, 2025 400,000 3.86% 400,000 3.86% Senior secured notes - $100.0 million January 14, 2026 100,000 3.86% 100,000 3.86% Senior secured notes - $53.5 million December 30, 2029 42,100 7.25% 42,600 7.25% Senior secured notes - $110.0 million September 30, 2030 96,257 6.47% 97,366 6.47% Total SDTS debt 698,357 699,966 Total long-term debt 715,545 717,466 Less unamortized deferred financing costs (121 ) (129 ) Total long-term debt, less deferred financing costs 715,424 717,337 Less current portion of long-term debt (7,960 ) (7,849 ) Debt classified as long-term debt, less deferred financing costs $ 707,464 $ 709,488 In 2010, TDC issued $25.0 million aggregate principal amount of 8.50% per annum senior secured notes to The Prudential Insurance Company of America and affiliates (TDC Notes). Principal and interest on the TDC Notes are payable quarterly, and the TDC Notes are secured by the assets of, and InfraREIT LP’s equity interest in, TDC on materially the same basis as with lenders under InfraREIT LP’s revolving credit facility described above in Note 6, Borrowings Under Credit Facilities SDTS has $60.0 million aggregate principal amount of 5.04% per annum senior secured notes issued to The Prudential Insurance Company of America and affiliates in 2011 (2011 Notes). Interest is payable quarterly while no principal payments are due until maturity. In 2015, SDTS issued $400.0 million in 10 year senior secured notes, series A (Series A Notes), and in 2016 issued an additional $100.0 million in 10 year senior secured notes, series B (Series B Notes). These senior secured notes were issued through a private placement conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and bear interest at a rate of 3.86% per annum, payable semi-annually. The Series A Notes are due at maturity with outstanding accrued interest payable each June and December. The Series B Notes are due at maturity with outstanding accrued interest payable each January and July. In 2009, SDTS issued $53.5 million aggregate principal amount of 7.25% per annum senior secured notes to The Prudential Insurance Company of America and affiliates (2009 Notes). Principal and interest on the 2009 Notes are payable quarterly. In 2010, SDTS issued $110.0 million aggregate principal amount of 6.47% per annum senior secured notes to The Prudential Insurance Company of America (2010 Notes). Principal and interest on the 2010 Notes are payable quarterly. SDTS and TDC are entitled to prepay amounts outstanding under their senior secured notes, subject to a prepayment penalty equal to the excess of the discounted value of the remaining scheduled payments with respect to such notes over the amount of the prepaid notes. The agreements governing the senior secured notes contain customary covenants, such as debt to capitalization ratios, debt service coverage ratios, limitations on liens, dispositions, mergers, entry into other lines of business, investments and the incurrence of additional indebtedness. The debt to capitalization ratios are calculated on a combined basis with Sharyland. SDTS’s Series A Notes and Series B Notes are not required to maintain a debt service coverage ratio. As of March 31, 2017 and December 31, 2016, SDTS and TDC were in compliance with all debt covenants under the applicable agreements. SDTS’s Series A Notes, Series B Notes, 2009 Notes, 2010 Notes and 2011 Notes are secured by substantially all of SDTS’s T&D assets, the leases, certain accounts and TDC’s equity interests in SDTS on the same basis as SDTS’s revolving credit facility described above in Note 6, Borrowings Under Credit Facilities The senior secured notes of TDC and SDTS are subject to customary events of default. If an event of default occurs with respect to the notes and is continuing, the lenders may accelerate the applicable amounts due.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	8. Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, restricted cash, due from affiliates and accounts payable approximate fair value due to the short-term nature of these assets and liabilities. We had borrowings totaling $715.5 million and $717.5 million under our senior secured notes with a weighted average interest rate of 4.6% per annum as of March 31, 2017 and December 31, 2016, respectively. The fair value of these borrowings is estimated using discounted cash flow analysis based on current market rates. Financial instruments, measured at fair value, by level within the fair value hierarchy were as follows: Carrying Fair Value (In thousands) Value Level 1 Level 2 Level 3 March 31, 2017 Long-term debt $ 715,545 $ — $ 753,084 $ — December 31, 2016 Long-term debt $ 717,466 $ — $ 758,415 $ —

Regulatory Matters

Regulatory Matters	3 Months Ended
	Mar. 31, 2017
Public Utilities Rate Matters [Abstract]
Regulatory Matters	9. Regulatory Matters Regulatory Liability Our regulatory liability is established through depreciation rates related to cost of removal and represents amounts that we expect to incur in the future. As of March 31, 2017 and December 31, 2016, we recorded on the Consolidated Balance Sheets as a long-term liability $24.0 million and $21.0 million, respectively, net of actual removal costs incurred. Rate Case Filing On April 29, 2016, Sharyland filed a system-wide rate proceeding with the PUCT to update its rates (April Rate Case Filing). Pursuant to a restructuring order issued by the PUCT in 2008 allowing us to utilize a REIT structure (2008 Restructuring Order), the April Rate Case Filing was prepared using the audited books and records of both Sharyland and SDTS and proposed rates to be set on a combined basis. However, as a result of a preliminary order issued by the PUCT in October 2016 (Preliminary Order), Sharyland and SDTS filed the December Rate Case Filing on December 30, 2016 with the PUCT which supersedes the April Rate Case Filing. The December Rate Case Filing requests: • PUCT approval of a tariff establishing terms and conditions for the leases between Sharyland and SDTS, including rent rates that SDTS will charge Sharyland under the leases; • the PUCT to issue SDTS its own certificate of convenience and necessity; and • new system-wide rates for Sharyland’s system. Sharyland and SDTS have requested the following rate case metrics, among others: • allowed return on equity of 10%; • maintain the capital structure of 55% debt to 45% equity; and • reduce the cost of debt to 4.97%, down from 6.73%. Consistent with the Preliminary Order, SDTS and Sharyland proposed to replace their five existing lease agreements with two new leases, one for transmission assets and one for distribution assets. Each of the leases, if approved by the PUCT, will be executed upon the effectiveness of the rate case and will have an initial four year term. Sharyland will continue to have operational control over our T&D assets and will remain primarily responsible for regulatory compliance and reporting requirements related to our T&D assets on behalf of and with the cooperation of SDTS. Further, we will continue to be responsible for funding footprint project capital expenditures that are included in the capital expenditure budgets that Sharyland provides on a rolling three year basis, which will be subject to our approval. Sharyland will remain responsible for funding repair expenditures. The proposed lease payments will include both base and percentage rent as established by the PUCT. Base rent under the leases is a fixed amount. Percentage rent will be an annual amount equal to a specified percentage (percentage rent rate) of gross revenues collected by Sharyland during the year, subject to certain adjustments as described in the leases, in excess of applicable annual percentage rent breakpoints. The transmission lease, as proposed, will have one annual percentage rent breakpoint and one percentage rent rate. The distribution lease, as proposed, will have two annual percentage rent breakpoints and two percentage rent rates. Sharyland will owe percentage rent based on the applicable percentage rent rate on the portion of its adjusted gross revenues in excess of the applicable annual percentage rent breakpoint. As proposed in the December Rate Case Filing, lease payments under the transmission lease will be updated upon effectiveness of the rate case to give effect to interim transmission cost of service (TCOS) filings that have been approved by the PUCT after the 2015 test year. The base rent payments will also be updated through TCOS and distribution cost recovery factor (DCRF) filings with the PUCT. These updates will replace the current rent supplements and validation process in our existing lease structure. The rent rates that have been proposed in the December Rate Case Filing are based on the premise that SDTS, as the owner of regulated T&D assets, should receive most of the regulated return on its invested capital, while leaving Sharyland with a portion of the return that gives it the opportunity to operate prudently and remain financially stable. The PUCT’s existing tariff construct does not contemplate the use of a lessor/lessee structure and therefore does not provide a mechanism for updating an asset company’s rates to account for load growth in its tenant’s distribution service territories. Accordingly, we and Sharyland have developed a proposed solution (Transition Payment Agreement) that is intended to allocate the growth in Sharyland’s distribution revenues as additional assets are placed in service after the 2015 test year between TDC, as the unregulated parent company of SDTS, and an unregulated parent company of Sharyland. The Transition Payment Agreement will provide us the opportunity to realize an additional portion of Sharyland’s revenue growth to mitigate the regulatory lag on our assets placed in service between rate cases, similar to the opportunity that integrated utilities enjoy. We expect the payments under the Transition Payment Agreement, which will be executed upon the conclusion of the rate case, to be based on a variety of factors, including Sharyland’s distribution revenue growth and the amount of distribution assets placed in service. Without the Transition Payment Agreement in place, we would be subject to considerable regulatory lag related to our distribution assets and, accordingly, the potential for reduced revenue related to our incremental distribution capital expenditures. On March 28, 2017, an abatement of the rate case proceeding was granted and the hearing on the merits that was scheduled for March 29 through April 7, 2017 was canceled, pending ongoing settlement negotiations among us and the other parties to the rate case. However, there can be no guarantee that a settlement will be reached or when the abatement may be lifted and, if necessary, the hearings rescheduled; therefore, the ultimate timing and outcome of the rate case cannot be predicted at this time.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies SDTS and Sharyland filed an amended rate case application and rate case filing package with the PUCT on December 30, 2016. For further information regarding the rate case, see Note 9, Regulatory Matters In addition, from time to time, we are a party to various legal proceedings arising in the ordinary course of business. Although we cannot predict the outcome of any such legal proceedings, we do not believe the resolution of these proceedings, individually or in the aggregate, will have a material impact on our business, financial condition or results of operations, liquidity and cash flows.

Equity

Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	11. Equity We and the Operating Partnership declared cash dividends on common stock and distributions on OP Units of $0.25 per share during the three months ended March 31, 2017 and 2016. We paid a total of $15.2 million and $13.6 million in dividends and distributions during the three months ended March 31, 2017 and 2016, respectively.

Noncontrolling Interest

Noncontrolling Interest	3 Months Ended
	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interest	12. Noncontrolling Interest We present as a noncontrolling interest the portion of any equity in entities that we control and consolidate but do not own. Generally, OP Units of our Operating Partnership participate in net income allocations and distributions and entitle their holder to the right, subject to the terms set forth in the partnership agreement, to require the Operating Partnership to redeem all or a portion of the OP Units held by such limited partner. At our option, we may satisfy this redemption with cash or by exchanging shares of InfraREIT, Inc. common stock on a one-for-one basis. As of March 31, 2017 and December 31, 2016, there were a total of 16.9 million OP Units held by the limited partners of the Operating Partnership. During the three months ended March 31, 2017 and 2016, an aggregate of 31,633 and 29,722 long-term incentive units (LTIP Units), respectively, were issued by our Operating Partnership to members of our board of directors. For additional information, refer to Note 15, Share-Based Compensation We follow the guidance issued by the FASB regarding the classification and measurement of redeemable securities. Accordingly, we have determined that the OP Units meet the requirements to be classified as permanent equity. We redeemed 3,100 OP Units with the issuance of 3,100 shares of common stock during the three months ended March 31, 2017. During the three months ended March 31, 2016, we did not redeem any OP Units.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	13. Earnings Per Share Basic earnings per share is calculated by dividing net earnings after noncontrolling interest by the weighted average shares outstanding. Diluted earnings per share is calculated similarly, except that it includes the dilutive effect of the assumed redemption of OP Units for shares of our common stock, if such redemption were dilutive. The redemption of OP Units would have been anti-dilutive during the three months ended March 31, 2017 and 2016. Earnings per share are calculated as follows: Three Months Ended March 31, (In thousands, except per share data) 2017 2016 Basic net income per share: Net income attributable to InfraREIT, Inc. $ 7,949 $ 6,315 Weighted average common shares outstanding 43,775 43,570 Basic net income per share $ 0.18 $ 0.14 Diluted net income per share: Net income attributable to InfraREIT, Inc. $ 7,949 $ 6,315 Weighted average common shares outstanding 43,775 43,570 Redemption of Operating Partnership units — — Weighted average dilutive shares outstanding 43,775 43,570 Diluted net income per share $ 0.18 $ 0.14 Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments: Net income attributable to noncontrolling interest $ 3,068 $ 2,462 Redemption of Operating Partnership units 16,900 17,057

Leases

Leases	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Leases	14. Leases The following table shows the composition of our lease revenue: Three Months Ended March 31, (In thousands) 2017 2016 Base rent (straight-line) $ 39,624 $ 33,665 Percentage rent — — Total lease revenue $ 39,624 $ 33,665 SDTS has entered into various leases with Sharyland for all our placed in service T&D assets. The master lease agreements, as amended, expire at various dates from December 31, 2017 through December 31, 2022. Each agreement includes annual base rent while all but one agreement includes additional percentage rent (based on an agreed upon percentage of the gross revenue of Sharyland, as defined in the lease agreements, in excess of annual specified breakpoints). The rate used for percentage rent for the reported time periods varies by lease and ranges from a high of 32% to a low of 23%. Because an annual specified breakpoint must be met under our leases before we can recognize any percentage rent, we anticipate our revenue will grow over the year with little to no percentage rent recognized in the first and second quarters of each year and with the largest amounts recognized during the third and fourth quarters of each year. For information related to our proposed new leases, which, if approved by the PUCT will replace our five existing leases, see Note 9, Regulatory Matters

Share Based Compensation

Share Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Compensation	15. Share-Based Compensation We currently utilize the InfraREIT, Inc. 2015 Equity Incentive Plan (2015 Equity Incentive Plan) primarily to compensate the non-employee directors for their service on our board of directors. In January 2017, we issued an aggregate of 31,633 LTIP Units to members of our board of directors with a grant date fair value of $18.02 per LTIP Unit and an aggregate fair value of $0.6 million. The 31,633 LTIP Units will vest in January 2018, subject to continued service. In January 2016, we issued an aggregate of 4,735 shares of common stock and 29,722 LTIP Units to members of our board of directors with a grant date fair value of $18.58 per common share or LTIP Unit and an aggregate fair value of $0.6 million. The 29,722 LTIP Units vested January 2017, and the 4,735 shares of common stock fully vested upon issuance. The compensation expense, which represents the fair value of the stock or LTIP Unit measured at market price at the date of grant, is recognized on a straight-line basis over the vesting period. For the three months ended March 31, 2017 and 2016, $0.1 million and $0.3 million, respectively, was recognized as compensation expense related to these grants and is included in general and administrative expense on the Consolidated Statements of Operations. The unamortized compensation expense related to these grants was $0.4 million as of March 31, 2017.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	16. Supplemental Cash Flow Information Supplemental cash flow information and non-cash investing and financing activities are as follows: Three Months Ended March 31, (In thousands) 2017 2016 Supplemental cash flow information Cash paid during the period for interest $ 6,418 $ 4,064 Non-cash investing and financing activities Change in accrued additions to electric plant 8,876 3,515 Allowance for funds used during construction - debt 815 982 Redemption of operating partnership units for common stock 55 — Dividends and distributions payable 15,169 15,157

Description of Business and P22

Description of Business and Presentation of Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation InfraREIT, Inc. is a Maryland corporation, which may be referred to in these financial statements as the “Company,” “we,” “us” and “our.” These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2017. We held 72.1% of the outstanding partnership units (OP Units) in InfraREIT Partners, LP (Operating Partnership or InfraREIT LP) as of March 31, 2017 and are its general partner. We include the accounts of the Operating Partnership and its subsidiaries in our consolidated financial statements. Hunt Consolidated, Inc. (HCI) affiliates, current or former employees and members of our board of directors held the other 27.9% of the outstanding OP Units as of March 31, 2017.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recent Accounting Guidance	Recent Accounting Guidance Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 203): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers

Electric Plant and Depreciati23

Electric Plant and Depreciation (Tables)	3 Months Ended
	Mar. 31, 2017
Public Utilities Property Plant And Equipment [Abstract]
Schedule of Major Classes of Electric Plant	The major classes of electric plant are as follows: (In thousands) March 31, 2017 December 31, 2016 Electric plant: Transmission plant $ 1,222,769 $ 1,203,164 Distribution plant 597,707 575,648 General plant 15,958 15,959 Total plant in service 1,836,434 1,794,771 Construction work in progress 107,900 107,189 Total electric plant 1,944,334 1,901,960 Accumulated depreciation (269,113 ) (261,140 ) Electric plant, net $ 1,675,221 $ 1,640,820

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets are as follows: March 31, 2017 December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Deferred financing costs on undrawn revolver $ 967 $ (446 ) $ 521 $ 967 $ (397 ) $ 570 Other regulatory assets: Deferred financing costs 27,761 (17,944 ) 9,817 27,761 (16,997 ) 10,764 Deferred costs recoverable in future years 23,793 — 23,793 23,793 — 23,793 Other regulatory assets 51,554 (17,944 ) 33,610 51,554 (16,997 ) 34,557 Investments 2,519 — 2,519 2,519 — 2,519 Other assets $ 55,040 $ (18,390 ) $ 36,650 $ 55,040 $ (17,394 ) $ 37,646

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: March 31, 2017 December 31, 2016 (In thousands) Maturity Date Amount Outstanding Interest Rate Amount Outstanding Interest Rate TDC Senior secured notes - $25.0 million December 30, 2020 $ 17,188 8.50% $ 17,500 8.50% SDTS Senior secured notes - $60.0 million June 20, 2018 60,000 5.04% 60,000 5.04% Senior secured notes - $400.0 million December 3, 2025 400,000 3.86% 400,000 3.86% Senior secured notes - $100.0 million January 14, 2026 100,000 3.86% 100,000 3.86% Senior secured notes - $53.5 million December 30, 2029 42,100 7.25% 42,600 7.25% Senior secured notes - $110.0 million September 30, 2030 96,257 6.47% 97,366 6.47% Total SDTS debt 698,357 699,966 Total long-term debt 715,545 717,466 Less unamortized deferred financing costs (121 ) (129 ) Total long-term debt, less deferred financing costs 715,424 717,337 Less current portion of long-term debt (7,960 ) (7,849 ) Debt classified as long-term debt, less deferred financing costs $ 707,464 $ 709,488

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Financial Instruments Measured at Fair Value	Financial instruments, measured at fair value, by level within the fair value hierarchy were as follows: Carrying Fair Value (In thousands) Value Level 1 Level 2 Level 3 March 31, 2017 Long-term debt $ 715,545 $ — $ 753,084 $ — December 31, 2016 Long-term debt $ 717,466 $ — $ 758,415 $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of Earnings Per Share	Earnings per share are calculated as follows: Three Months Ended March 31, (In thousands, except per share data) 2017 2016 Basic net income per share: Net income attributable to InfraREIT, Inc. $ 7,949 $ 6,315 Weighted average common shares outstanding 43,775 43,570 Basic net income per share $ 0.18 $ 0.14 Diluted net income per share: Net income attributable to InfraREIT, Inc. $ 7,949 $ 6,315 Weighted average common shares outstanding 43,775 43,570 Redemption of Operating Partnership units — — Weighted average dilutive shares outstanding 43,775 43,570 Diluted net income per share $ 0.18 $ 0.14 Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments: Net income attributable to noncontrolling interest $ 3,068 $ 2,462 Redemption of Operating Partnership units 16,900 17,057

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of Composition of Lease Revenue	The following table shows the composition of our lease revenue: Three Months Ended March 31, (In thousands) 2017 2016 Base rent (straight-line) $ 39,624 $ 33,665 Percentage rent — — Total lease revenue $ 39,624 $ 33,665

Supplemental Cash Flow Inform29

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information and Non-cash Investing and Financing Activities	Supplemental cash flow information and non-cash investing and financing activities are as follows: Three Months Ended March 31, (In thousands) 2017 2016 Supplemental cash flow information Cash paid during the period for interest $ 6,418 $ 4,064 Non-cash investing and financing activities Change in accrued additions to electric plant 8,876 3,515 Allowance for funds used during construction - debt 815 982 Redemption of operating partnership units for common stock 55 — Dividends and distributions payable 15,169 15,157

Description of Business and P30

Description of Business and Presentation of Financial Statements - Additional Information (Details)	3 Months Ended
	Mar. 31, 2017
Description Of Business And Presentation Of Financial Statements [Line Items]
Percentage of partnership units outstanding	72.10%
Hunt Consolidated Incorporation
Description Of Business And Presentation Of Financial Statements [Line Items]
Percentage of partnership units outstanding	27.90%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Due from affiliates	$ 27,058,000			$ 27,058,000		$ 32,554,000
Hunt Utility Services L L C
Related Party Transaction [Line Items]
Payment for management fee	7,000,000	$ 3,300,000
Prepaid management fee	0			0
Accrued management fee	$ 0			0		3,500,000
Management fee				$ 14,000,000	$ 13,100,000
Management agreement expiration date	Dec. 31, 2019
Agreement successive renewal terms	5 years
Management fee, description	The base fee for each twelve month period beginning each April 1 thereafter will equal 1.50% of our total equity as of December 31 of the immediately preceding year, subject to a $30.0 million cap
Investment management fee equity multiplier	1.50%			1.50%
Management fee cap	$ 30,000,000			$ 30,000,000
Hunt Utility Services L L C | Scenario, Forecast
Related Party Transaction [Line Items]
Management fee			$ 14,200,000
Maximum | Hunt Utility Services L L C
Related Party Transaction [Line Items]
Reimbursement of annual software license and maintenance fees and other expenses	100,000	100,000
Sharyland
Related Party Transaction [Line Items]
Lease revenue from related party	39,600,000	33,700,000
Deferred rent liability	16,500,000			16,500,000		15,600,000
Payments to acquire plant, and equipment	52,200,000	$ 58,200,000
Accounts payable and accrued liabilities	4,800,000			4,800,000		13,700,000
Due from affiliates	$ 27,100,000			$ 27,100,000		$ 32,600,000

Electric Plant and Depreciati32

Electric Plant and Depreciation - Schedule of Major Classes of Electric Plant (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Electric plant:
Transmission plant	$ 1,222,769	$ 1,203,164
Distribution plant	597,707	575,648
General plant	15,958	15,959
Total plant in service	1,836,434	1,794,771
Construction work in progress	107,900	107,189
Total electric plant	1,944,334	1,901,960
Accumulated depreciation	(269,113)	(261,140)
Electric plant, net	$ 1,675,221	$ 1,640,820

Electric Plant and Depreciati33

Electric Plant and Depreciation - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Public Utilities Property Plant And Equipment [Abstract]
Electric plant, net includes plant acquisition adjustments	$ 27.4	$ 27.7

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 138,384	$ 138,384

Other Assets - Summary of Other

Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Assets Noncurrent [Abstract]
Deferred financing costs on undrawn revolver, Gross Carrying Amount	$ 967	$ 967
Other regulatory assets Deferred financing costs, Gross Carrying Amount	27,761	27,761
Other regulatory assets Deferred costs recoverable in future years, Gross Carrying Amount	23,793	23,793
Other regulatory assets, Gross Carrying Amount	51,554	51,554
Investments, Gross Carrying Amount	2,519	2,519
Other assets, Gross Carrying Amount	55,040	55,040
Deferred financing costs on undrawn revolver, Accumulated Amortization	(446)	(397)
Other regulatory assets Deferred financing costs, Accumulated Amortization	(17,944)	(16,997)
Other regulatory assets, Accumulated Amortization	(17,944)	(16,997)
Other assets, Accumulated Amortization	(18,390)	(17,394)
Deferred financing costs on undrawn revolver, Net Carrying Amount	521	570
Other regulatory assets Deferred financing costs, Net Carrying Amount	9,817	10,764
Other regulatory assets Deferred costs recoverable in future years, Net Carrying Amount	23,793	23,793
Other regulatory assets, Net Carrying Amount	33,610	34,557
Investments, Net Carrying Amount	2,519	2,519
Other assets, Net Carrying Amount	$ 36,650	$ 37,646

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Assets Noncurrent [Abstract]
Deferred costs recoverable in future years	$ 23,793	$ 23,793

Borrowings Under Credit Facil37

Borrowings Under Credit Facilities - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
InfraREIT LP Revolving Credit Facility
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	$ 0	$ 0	$ 75,000,000
Line of credit facility, remaining borrowing capacity	$ 75,000,000	75,000,000	15,000,000
Credit facility, maturity date	Dec. 10, 2019
Revolving credit facility, interest rate description	a rate equal to (1) the one, two, three or six month London Interbank Offered Rate (LIBOR) plus 2.5%, or (2) a base rate (equal to the highest of (a) the Federal Funds Rate plus ½ of 1%, (b) the Bank of America prime rate and (c) LIBOR plus 1%) plus 1.5%. Letters of credit are subject to a letter of credit fee equal to the daily amount available to be drawn times 2.5%.
Letter of credit fee multiplier	2.50%
InfraREIT LP Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.50%
InfraREIT LP Revolving Credit Facility | Federal Funds Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
InfraREIT LP Revolving Credit Facility | LIBOR
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%
InfraREIT LP Revolving Credit Facility | Base Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Third Amended and Restated Credit Agreement | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Credit facility, maturity date	Dec. 10, 2019
Credit facility, maximum borrowing capacity			250,000,000
Third Amended and Restated Credit Agreement | SDTS Credit Agreements | Letter Of Credit
Line Of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity			25,000,000
Third Amended and Restated Credit Agreement | SDTS Credit Agreements | Swingline Loans
Line Of Credit Facility [Line Items]
Line of credit facility, remaining borrowing capacity			$ 5,000,000
Revolving Credit Facility | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	$ 162,000,000	137,500,000
Line of credit facility, remaining borrowing capacity	$ 88,000,000	$ 112,500,000
Revolving credit facility, interest rate description	a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus ½ of 1% and (c) LIBOR plus 1.00% per annum, plus a margin of either 0.75% or 1.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis or (2) the one, two, three or six month LIBOR plus a margin of either 1.75% or 2.00% per annum
Debt, weighted average interest rate	2.72%	2.50%
Revolving Credit Facility | SDTS Credit Agreements | Letter Of Credit
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	$ 0	$ 0
Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR) | SDTS Credit Agreements | Minimum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR) | SDTS Credit Agreements | Maximum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Revolving Credit Facility | Federal Funds Rate | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Revolving Credit Facility | LIBOR | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Revolving Credit Facility | Base Rate | SDTS Credit Agreements | Minimum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.75%
Revolving Credit Facility | Base Rate | SDTS Credit Agreements | Maximum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.00%

Long-Term Debt - Components of

Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Debt Instrument [Line Items]
Long-term debt, Amount Outstanding	$ 715,545	$ 717,466
Less unamortized deferred financing costs	(121)	(129)
Total long-term debt, less deferred financing costs	715,424	717,337
Less current portion of long-term debt	(7,960)	(7,849)
Debt classified as long-term debt, less deferred financing costs	$ 707,464	$ 709,488
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	8.50%	8.50%		8.50%
Long-term debt, Amount Outstanding	$ 17,188	$ 17,500
Interest bearing note, maturity date	Dec. 30, 2020
SDTS Credit Agreements
Debt Instrument [Line Items]
Long-term debt, Amount Outstanding	$ 698,357	$ 699,966
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	5.04%	5.04%	5.04%
Long-term debt, Amount Outstanding	$ 60,000	$ 60,000
Interest bearing note, maturity date	Jun. 20, 2018
SDTS Credit Agreements | Senior Secured Notes, 3.86%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	3.86%	3.86%
Long-term debt, Amount Outstanding	$ 400,000	$ 400,000
Interest bearing note, maturity date	Dec. 3, 2025
SDTS Credit Agreements | Senior Secured Notes, 3.86% Maturing in 2026
Debt Instrument [Line Items]
Long-term debt, Interest Rate	3.86%	3.86%
Long-term debt, Amount Outstanding	$ 100,000	$ 100,000
Interest bearing note, maturity date	Jan. 14, 2026
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	7.25%	7.25%			7.25%
Long-term debt, Amount Outstanding	$ 42,100	$ 42,600
Interest bearing note, maturity date	Dec. 30, 2029
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	6.47%	6.47%		6.47%
Long-term debt, Amount Outstanding	$ 96,257	$ 97,366
Interest bearing note, maturity date	Sep. 30, 2030

Long-Term Debt - Components o39

Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, face amount	$ 25		$ 25
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, face amount	60	$ 60
SDTS Credit Agreements | Senior Secured Notes, 3.86%
Debt Instrument [Line Items]
Long-term debt, face amount	400
SDTS Credit Agreements | Senior Secured Notes, 3.86% Maturing in 2026
Debt Instrument [Line Items]
Long-term debt, face amount	100
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, face amount	53.5			$ 53.5
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, face amount	$ 110		$ 110

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2017	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Debt Instrument [Line Items]
Deferred financing costs, Net Carrying Amount	$ 570		$ 521
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, face amount			$ 25,000		$ 25,000
Long-term debt, stated interest rate	8.50%		8.50%		8.50%
Deferred financing costs, Net Carrying Amount	$ 100		$ 100
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, face amount			$ 60,000	$ 60,000
Long-term debt, stated interest rate	5.04%		5.04%	5.04%
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, face amount			$ 53,500			$ 53,500
Long-term debt, stated interest rate	7.25%		7.25%			7.25%
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, face amount			$ 110,000		$ 110,000
Long-term debt, stated interest rate	6.47%		6.47%		6.47%
SDTS Credit Agreements | Series A Notes
Debt Instrument [Line Items]
Long-term debt, face amount		$ 400,000
Long-term debt, stated interest rate		3.86%
Long-Term Debt Maturity Period		10 years
SDTS Credit Agreements | Series B Notes
Debt Instrument [Line Items]
Long-term debt, face amount	$ 100,000
Long-term debt, stated interest rate	3.86%
Long-Term Debt Maturity Period	10 years

Fair Value of Financial Instr41

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term Debt	$ 707,464	$ 709,488
Senior Secured Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term Debt	$ 715,500	$ 717,500
Debt, weighted average interest rate	4.60%	4.60%

Fair Value of Financial Instr42

Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Carrying Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 715,545	$ 717,466
Level 2 | Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 753,084	$ 758,415

Regulatory Matters - Additional

Regulatory Matters - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)LeaseRentBreakpointRentRate	Dec. 31, 2016USD ($)Lease
Public Utilities General Disclosures [Line Items]
Regulatory Liability | $	$ 24,013	$ 21,004
Leasing arrangements, operating leases, term of contract	4 years
Transmission Assets
Public Utilities General Disclosures [Line Items]
Number of annual rent breakpoints | RentBreakpoint	1
Number of rent rates | RentRate	1
Distribution Assets
Public Utilities General Disclosures [Line Items]
Number of annual rent breakpoints | RentBreakpoint	2
Number of rent rates | RentRate	2
Sharyland Distribution & Transmission Services | Sharyland
Public Utilities General Disclosures [Line Items]
Number of lease agreements	2	5
Sharyland Distribution & Transmission Services | Sharyland | Transmission Assets
Public Utilities General Disclosures [Line Items]
Number of lease agreements	1
Sharyland Distribution & Transmission Services | Sharyland | Distribution Assets
Public Utilities General Disclosures [Line Items]
Number of lease agreements	1
Sharyland | Sharyland Distribution & Transmission Services
Public Utilities General Disclosures [Line Items]
Public utilities, allowed return on equity, percentage	10.00%
Sharyland and SDTS
Public Utilities General Disclosures [Line Items]
Public utilities, requested capital structure, debt percentage	55.00%
Public utilities, requested capital structure, equity percentage	45.00%
Public utilities, reduced cost of debt percentage	4.97%
Public utilities cost of debt percentage	6.73%

Equity - Additional Information

Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Cash dividends declared per share to shareholders	$ 0.25	$ 0.25
Cash distributions declared to unit holders, per unit	$ 0.25	$ 0.25
Dividends and distributions paid	$ 15,161	$ 13,634

Noncontrolling Interest - Addit

Noncontrolling Interest - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Minority Interest [Line Items]
Description of units redeemed for cash or, at option, exchanged for common shares	one-for-one basis
OP Units held by the limited partners	16,900,000		16,900,000
Operating partnership units redeem	3,100	0
Common shares issued	3,100
LTIP Units
Minority Interest [Line Items]
Operating partnership units issued	31,633	29,722

Earnings Per Share - Computatio

Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic net income per share:
Net income attributable to InfraREIT, Inc.	$ 7,949	$ 6,315
Weighted average common shares outstanding	43,775	43,570
Basic net income per share	$ 0.18	$ 0.14
Diluted net income per share:
Net income attributable to InfraREIT, Inc.	$ 7,949	$ 6,315
Weighted average common shares outstanding	43,775	43,570
Weighted average dilutive shares outstanding	43,775	43,570
Diluted net income per share	$ 0.18	$ 0.14
Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments:
Net income attributable to noncontrolling interest	$ 3,068	$ 2,462
Redemption of Operating Partnership units	16,900	17,057

Leases - Schedule of Compositio

Leases - Schedule of Composition of Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Leases [Abstract]
Base rent (straight-line)	$ 39,624	$ 33,665
Total lease revenue	$ 39,624	$ 33,665

Leases - Additional Information

Leases - Additional Information (Details)	3 Months Ended
	Mar. 31, 2017
Operating Leased Assets [Line Items]
Operating leases placed in services dates description	SDTS has entered into various leases with Sharyland for all our placed in service T&D assets. The master lease agreements, as amended, expire at various dates from December 31, 2017 through December 31, 2022.
Lease expiration date range, start date	Dec. 31, 2017
Lease expiration date range, end date	Dec. 31, 2022
Maximum
Operating Leased Assets [Line Items]
Rate of rent used, Percentage	32.00%
Minimum
Operating Leased Assets [Line Items]
Rate of rent used, Percentage	23.00%

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - 2015 Equity Incentive Plan - USD ($)	1 Months Ended		3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unamortized stock compensation expense			$ 400,000
General And Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expenses			$ 100,000	$ 300,000
Director
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Aggregate common stock shares issued to directors		4,735
Director | LTIP Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
LTIP Units issued to directors	31,633	29,722
Grant date fair value per share	$ 18.02	$ 18.58
Grant date fair value	$ 600,000	$ 600,000
Vesting period of LTIP Units	Jan. 31, 2018	Jan. 31, 2017

Supplemental Cash Flow Inform50

Supplemental Cash Flow Information - Supplemental Cash Flow Information and Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Supplemental cash flow information
Cash paid during the period for interest	$ 6,418	$ 4,064
Non-cash investing and financing activities
Change in accrued additions to electric plant	8,876	3,515
Allowance for funds used during construction - debt	815	982
Redemption of operating partnership units for common stock	55
Dividends and distributions payable	$ 15,169	$ 15,157	$ 15,161