How to Read the Electricity Facts Label (EFL) for Your Texas Electricity Plan
If you are shopping for electricity in Texas, the most important document to understand is the Electricity Facts Label, or EFL. Every plan offered by a Retail Electric Provider must include one. It lists key plan details in a consistent format so you can compare options and choose confidently.
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What Is an Electricity Facts Label?
The Electricity Facts Label is a required document regulated by the Public Utility Commission of Texas (PUCT). It gives a clear breakdown of each electricity plan's price, term, fees, and energy mix. Think of it like a nutrition label for electricity plans. The format is the same across all providers, which allows for fair and easy comparisons.
Why the EFL Matters
Texas has a deregulated electricity market. That means you can choose your provider and plan. Some plans that seem affordable at first may include bill credits, base charges, or usage rules that impact your real cost.
Reading the EFL helps you:
Avoid unexpected fees
Understand how prices shift with your usage
Compare details across different providers
Make a decision that fits your home’s needs
Key Sections of an EFL and What They Mean
1. Average Price per kWh
The top of the EFL shows the average cost per kilowatt-hour at (usually) three standard usage levels: 500, 1,000, and 2,000 kWh. These averages include:
The energy charge
Any base charge
TDU delivery fees
Any usage-based discounts or credits
The price at higher usage levels may look lower because of credits that only apply once you pass a threshold. Understanding this helps you match a plan to your actual usage.
2. Price Components Breakdown
The total electricity price is made up of several parts:
Base Charge: A flat monthly fee. Some plans list this as zero, while others may charge a few dollars each month.
Energy Charge: The per-kilowatt-hour rate from the Retail Electric Provider.
Delivery Charges: These come from your local utility, also called a TDU. They include a fixed monthly amount and a charge based on how much electricity you use. These charges apply no matter which provider you choose.
You may also see credits for things like using Auto Pay or enrolling in paperless billing.
3. Type of Plan and Contract Term
The EFL lists whether the plan is:
Fixed rate (the energy charge stays the same for the contract length)
Variable rate (the price may change each month)
Indexed rate (the price follows a formula based on market rates)
You will also see how long the contract lasts. Common terms are 12, 24, or 36 months. The EFL will also include the early termination fee, if there is one.
4. Price Change Disclosures
Even with a fixed-rate plan, some charges may change. This section explains which fees are locked and which can change, such as:
Utility delivery charges
Regulatory fees from ERCOT or other agencies
Charges related to updates in the law or grid operations
This section helps you understand why your total bill might shift even when your usage stays the same.
5. Renewable Energy Content
Every EFL must include the percentage of electricity in the plan that comes from renewable sources. Some plans offer 100 percent renewable energy, while others may be lower. The EFL also shows the statewide average so you can compare.
If using clean energy is important to you, this section confirms whether the plan matches your values.
6. Solar Buyback and Distributed Generation
If you have rooftop solar, look for a note about distributed renewable generation. Some plans allow you to sell unused solar energy back to the grid, while others do not.
If the EFL says the plan does not support buyback, you can contact the provider to ask about plans that do.
7. Other Important Details
At the bottom of the EFL, you will find information like:
Whether the plan requires paperless billing
Whether Auto Pay is required for discounts
Whether the billing cycle matches the calendar month
Where to find full terms and customer rights documents
This part of the EFL helps set expectations for how the plan works day to day.
What the EFL Does Not Include
While the EFL covers pricing and structure, it does not include every detail. You should also review:
The Terms of Service
Your Rights as a Customer
These documents cover customer service policies, deposits, disconnection terms, and billing rules.
Where to Find the EFL
Retail providers are required to make the EFL available:
On the plan’s detail page before you sign up
In your welcome email
In your account dashboard
Upon request by phone or email
If you are comparing plans, be sure to read the EFL before enrolling. It is the most transparent & complete snapshot of what you are getting.
Don't overpay for electricity.
Common FAQs about EFLs
The EFL helps you understand how an electricity plan works before you enroll. It outlines key pricing details, plan structure, and any fees or conditions. It is required for every plan offered by a Retail Electric Provider in Texas.
Yes. All providers must use the same format for their EFLs. This makes it easier for you to compare plans without digging through different layouts or fine print styles.
Most providers link to the EFL on the plan’s detail page. You should also receive it during sign-up and in your welcome email. If you do not see it, ask the provider to send it before you enroll.
It is an estimate that includes the base charge, energy rate, and delivery fees for three standard usage levels: 500, 1,000, and 2,000 kWh. It is not a flat rate. Your actual price will vary based on how much energy you use.
Some plans include usage credits or penalties based on how much electricity you use. These features can cause the average price to go up or down at different usage levels. Always check which usage level best matches your home.
Yes. Delivery charges are set by your local utility, not by your electricity provider. These charges appear on every bill and are passed through at cost.
If you choose a fixed-rate plan, your energy rate will stay the same for the length of the contract. However, utility delivery fees and regulatory charges may still change.
This section shows how much of your electricity comes from renewable sources like wind or solar. Some plans offer 100 percent renewable energy. The EFL also shows the statewide average for comparison.
The EFL covers pricing, contract length, and renewable content, but it does not explain every policy or service term. For full details, review the Terms of Service and Your Rights as a Customer documents.
The Electricity Facts Label is not just a formality. It is your best tool for understanding how your electricity plan works. If you are moving, switching providers, or just checking your current plan, taking five minutes to read the EFL can prevent surprises and help you make smarter choices.
