How to Read a Texas Electricity Facts Label (EFL) Without Getting Confused

Introduction

Navigating the Texas electricity market can feel like decoding a secret language, especially when you encounter the Electricity Facts Label (EFL). This mandatory document from the Public Utility Commission (PUC) reveals the true costs of any electricity plan—but it's often buried in jargon that leaves consumers scratching their heads.

Electricity prices change often, so understanding your EFL helps you compare plans using your household’s usage.

What Is an Electricity Facts Label?

The EFL is a standardized disclosure document required by the PUC of Texas for all retail electricity providers. Think of it as a nutrition label for your electricity plan. Just as food labels break down calories, fats, and nutrients, the EFL breaks down your electricity costs into digestible components.

Every retail electricity plan in Texas must have an accompanying EFL, and providers must make it easily accessible before you sign up. Never rely on advertised "teaser" rates—always find and review the EFL.

Step-by-Step Guide to Reading Your EFL

1. Average Price per kWh

This is the most important section. The EFL shows your average price at three usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh per month.

Why three levels? Because electricity pricing often changes based on how much you use. A plan’s headline price may apply only at one usage level. If you use 500 kWh monthly, check the corresponding EFL column and any usage thresholds.

Pro Tip: Check your past bills to determine your average monthly usage, then focus on the corresponding column in the EFL.

2. Energy Charge vs. Base Charge

• Energy Charge: This is your usage-based cost—the per-kWh rate for the electricity you consume.
• Base Charge: This is a fixed monthly fee you pay regardless of usage. Some plans have no base charge; others do. Check the EFL and plan terms for the amount.

The EFL’s average price includes TDU (Transmission and Distribution Utility) delivery fees. Check the delivery charges and other fees before comparing estimated bills.

3. Renewable Energy Content

Interested in going green? The EFL clearly shows what percentage of the plan's energy comes from renewable sources like wind and solar. Texas leads the nation in wind energy, so many plans offer 100% renewable options at competitive rates.

4. Contract Terms and Cancellation Fees

Look for the contract length (typically 6, 12, or 24 months) and the Early Termination Fee (ETF). Cancellation fees vary by plan; check the EFL and contract terms for the amount. If you might need to move or switch plans, factor this into your decision.

Spotting the Traps

Tiered Pricing

Some plans use tiered pricing where your rate increases dramatically after hitting certain usage thresholds. A plan might charge one price for the first 1,000 kWh and a different price for usage above that. Check how each tier affects your estimated bill.

Minimum Usage Fees

If you're a low-usage customer (apartments, small homes, snowbirds), watch for minimum usage fees. These can add a charge to your bill in any month you use less than the plan’s threshold.

Time-of-Use Rates

Plans with "Free Nights" or "Free Weekends" often have higher daytime rates. These can work well if your usage aligns with the free periods, but can cost more if it doesn't.

Cost-Saving Hacks

1. Compare EFLs side-by-side using tools on our Plans page
2. Estimate your annual bill: Compare each month using your kWh and the plan’s charges, fees and credits. Avoid adding base charges twice if they are already included in an EFL average price.
3. Factor in your lifestyle: Work from home? A "Free Nights" plan might not save you money

Why This Matters in 2025

With market volatility from increasing renewable energy adoption and fluctuating demand patterns, understanding your EFL has never been more important. Prices and fees can differ between similar-sounding plans.

Reading the EFL helps you spot charges and compare the total estimated bill before enrolling.

Ready to compare plans with confidence? View our electricity plans and see EFLs explained in plain English.