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

5 minute read · Understanding your plan

Every retail electricity plan in Texas is required by law to have an Electricity Facts Label — a standardized one-page document that discloses the true cost of the plan. It's the closest thing Texas has to a nutrition label for electricity plans, and reading it properly is the single best way to avoid overpaying.

The three usage level columns

At the top of every EFL, you'll see the average price per kWh displayed at three usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh. This is the most important section of the label.

The rate at each level includes everything — the provider's energy charge, TDU delivery charges, monthly base fees, and any bill credits — divided by the total kWh at that usage level. It's your true all-in cost per kWh.

The rate changes across usage levels for two reasons:

  • Fixed charges get spread over more kWh — if a plan has a $9.95/month base fee, that fee costs you 2¢/kWh at 500 kWh but only 0.5¢/kWh at 2,000 kWh. Higher usage = lower effective rate from fixed costs.
  • Bill credits create spikes— plans with a bill credit (e.g., "$50 credit when you use 1,000–2,000 kWh") show an artificially low rate at exactly 1,000 kWh. Use slightly more or less, and you lose the credit entirely.
Red flag: If the rate at 1,000 kWh looks great but the rate at 500 kWh is dramatically higher, the plan has a bill credit that you may not reliably qualify for. This is especially important for apartment renters or low-usage households.

Key sections of the EFL

Average price per kWh

The headline rates at 500, 1,000, and 2,000 kWh. Always look at the column closest to your actual monthly usage. This is the only number you need for comparing plans.

Energy charge

The provider's raw per-kWh rate — what they charge you for the energy itself, before delivery charges and fees. This number alone doesn't tell you much; it's the average price per kWh that matters for comparison.

TDU delivery charges

The pass-through charges from your TDSP (Oncor, CenterPoint, etc.) for maintaining the physical infrastructure. These are the same regardless of which retail provider you choose — they're a set cost in your area and are regulated by the PUCT.

Monthly base fee

A flat monthly charge that applies regardless of usage. Common values are $0 to $9.95. A higher base fee makes plans more expensive for low-usage customers and less significant for high-usage customers.

Contract term and ETF

The length of the contract (typically 12, 24, or 36 months) and the early termination fee charged if you cancel before the term ends. If there is no ETF listed, the plan has none — a key fact for renters or anyone who might move.

Renewable energy content

The percentage of electricity from renewable sources, the fuel mix breakdown, and any certification for green energy plans. For plans marketed as 100% renewable, this section should confirm 100% with the source type disclosed.

How to use the EFL when comparing plans

  1. Find your average monthly kWh on your current electricity bill.
  2. On the EFL, look at the average price at the column closest to your usage.
  3. Compare that single number across plans — it already includes everything.
  4. Check the ETF and contract term to make sure the commitment matches your plans.

Texas Energy Compare pulls the EFL rates at all three usage levels directly from each plan so you can compare side-by-side without downloading PDFs. Enter your ZIP code to see current plans in your area.

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