How to read an Electricity Facts Label (EFL) in Texas

The Electricity Facts Label, or EFL, is the most useful document a Texas electricity provider gives you. Every plan has one, the format is set by the Public Utility Commission of Texas (PUCT), and it is linked from every plan on Power to Choose and on our plan pages. It is usually one or two pages long. Here is how to read it.

1. The header

At the top you will find the provider's name, the plan name, the service area (for example Oncor or CenterPoint), and a date. The EFL also carries a version number. Save a copy of the EFL for the plan you choose; it is the reference for what you agreed to.

2. The average price table

This is the part shoppers see first:

Texas rules require residential EFLs to show the average price at these three levels, rounded to a tenth of a cent. For a fixed-rate plan this price must reflect all recurring charges, excluding state and local sales taxes and the gross receipts tax reimbursement.

The key is to read all three numbers:

• Price falls steadily from 500 to 2,000 kWh: there is a monthly base charge spread over more usage. Normal.
• Price at 1,000 kWh is far below the 500 kWh price, then rises at 2,000 kWh: very likely a bill credit that starts at 1,000 kWh. See our guide to bill credits and the 999 kWh cliff.
• Price at 500 kWh is extremely high: there may be a minimum-usage charge or a large base charge.

3. The price breakdown

Most EFLs also break the price into parts. The names vary, but you will usually see:

• Base charge: a fixed dollar amount per month (or per billing cycle), charged whatever your usage.
• Energy charge: cents per kWh charged by the provider for the electricity itself. Some plans use tiers (a different rate above a certain usage).
• TDU delivery charges: what your local utility charges to deliver power, usually a fixed monthly amount plus a per-kWh amount. These are passed through from the utility, such as Oncor or CenterPoint, and are the same whichever provider you pick in that area. See utility vs retail provider.
• Credits: any bill credit, with the amount and the usage level that triggers it.

With these parts you can estimate a bill at any usage, not just the three printed levels. That is essentially what our ranking does, month by month over a year.

4. The disclosure chart

Below the prices is a chart of plain-language questions. Rules require it to cover:

• Type of product: fixed rate or variable. A fixed-rate price can still change for limited reasons, such as actual changes in TDU charges or new government fees; the EFL explains this.
• Contract term: the number of months.
• Termination fee: whether you pay one to leave early, and how much. Some are a flat amount; others are a dollar amount per month remaining.
• Can my price change, and how? For a variable product, how the price is set.
• Other fees: or where to find them in the Terms of Service.
• Prepaid: whether it is a pay-in-advance product.
• Renewable content: the plan's percentage of renewable energy and the statewide average.

5. The fine print

The bottom of the EFL often holds the most important details: bill credit conditions, minimum-usage fees, special charges that apply only in part of a utility's area, and promotional terms. Read this part slowly.

A quick walk-through

Say an EFL shows 15.0¢ at 500 kWh, 13.0¢ at 1,000 kWh and 12.0¢ at 2,000 kWh, a 12-month term, a $150 cancellation fee and no credits. The steady decline points to a base charge. At 1,000 kWh the bill is about $130 (13.0¢ × 1,000). In an August month at 1,500 kWh, it is somewhere between the 1,000 and 2,000 kWh prices, about $185. (These numbers are an illustration, not a real plan.)

Now compare a label showing 20.0¢, 8.0¢ and 13.0¢. The dip at 1,000 kWh means a credit. Just below 1,000 kWh, that plan's average price could be more than double the 8.0¢ shown in the 1,000 kWh column.

Two other documents

Each plan also has Terms of Service and a Your Rights as a Customer document. The EFL summarizes the price; the Terms of Service holds the full contract. If anything in the EFL is unclear, check those or ask the provider before enrolling.

To see whether a termination fee is worth paying, read when breaking a contract pays.

To compare EFLs side by side for your area, browse all plans or providers. Prices and terms change often; always open the current EFL before you sign.