How to Read Your Electricity Facts Label (EFL)

The one-page disclosure every Texas plan must publish — and how to read it at your usage level so the numbers can’t fool you.

What Is an Electricity Facts Label?

The Electricity Facts Label — the EFL — is a standardized one-page summary that every Texas retail provider must publish for every plan, in a format set by the Public Utility Commission of Texas (PUCT Rule §25.475). It’s the one apples-to-apples document for comparing plans, far more reliable than the rate on an ad.

The EFL doesn’t travel alone. Together with the Terms of Service and the Your Rights as a Customer document, it forms your actual electricity contract. The EFL handles the pricing and key facts; the other two cover the fine print and your protections.

If you’re still deciding which plan type to shortlist, our Texas electricity rates guide covers fixed, bill-credit, and no-deposit options; once you’ve read the EFL and picked one, switching providers takes about ten minutes.

How to Read an EFL

An EFL packs a lot into one page, but you only need five passes to read it well — work top to bottom, always anchoring on your own usage.

1. Start with the average price at your usage

The EFL lists an average price per kWh at 500, 1,000, and 2,000 kWh. These are all-in averages — what you’d pay per kWh if you used exactly that much — not your energy rate and not a range. Pull your real monthly usage off a past bill and read the column closest to it, not the advertised number.

2. Check the energy charge and base charge

Each average folds together the energy charge (the provider’s price per kWh) and a base charge (a flat monthly fee charged even at zero usage). The base charge is why a low-usage month costs more per kWh — the same flat fee spreads across fewer kilowatt-hours.

3. Add in the TDU delivery charges

Your utility’s TDU delivery charges are folded into the same average and are identical across every provider in your area, so they can’t be shopped away — only the energy charge and base charge change from plan to plan.

4. Watch for credits, minimum-usage fees, and tiers

A bill credit or minimum-usage fee can swing the three averages sharply in different directions. See Warning Signs in an EFL below for how to spot one before it costs you.

5. Review the term, ETF, and renewable content

Note the contract length, the early termination fee you’d pay to leave early, the plan type (fixed, variable, or indexed), and the renewable content percentage. These don’t change your price directly, but they decide how locked-in and how green the plan is.

Example: How to Read an Electricity Facts Label

Here’s a real EFL with the five things above marked directly on it — the provider’s identifying details have been removed, but every number is exactly as printed on the original.

Example Electricity Facts Label with five numbered callouts: average price at 500/1,000/2,000 kWh, what builds the price, the bill credit, contract terms, and renewable content12345

Example Electricity Facts Label — adapted and anonymized for educational purposes.

1. Average price

The 500 / 1,000 / 2,000 kWh row — read whichever column is closest to your real monthly usage.

2. What builds the price

The base charge, energy charge, and TDU delivery charges just below it add up to the average price above.

3. Bill credit

$100 back, but only once usage reaches 1,000 kWh — exactly the kind of threshold that can make the 500 kWh price look far worse.

4. Contract terms

Fixed-rate product, 12-month term, and the early termination fee, all in the disclosure chart.

5. Renewable content

This plan’s renewable percentage next to the statewide average, so you can see how it compares.

What the 500, 1,000 and 2,000 kWh Prices Really Mean

These three prices are averages calculated at exactly 500, 1,000, and 2,000 kWh of monthly usage — not the plan’s underlying energy charge, and not a guarantee at any usage level in between. Here’s how far apart they can land on the example EFL above:

Monthly UsageAverage Price (¢/kWh)
500 kWh22.1¢
1,000 kWh11.7¢
2,000 kWh16.6¢

That plan’s energy charge is a flat 16.2936¢/kWh, yet the average price swings from 22.1¢ at 500 kWh down to 11.7¢ at 1,000 kWh and back up to 16.6¢ at 2,000 kWh. The $100 monthly bill credit explains it. Usage below 1,000 kWh gets none of it, so the 500 kWh average carries the full rate on its own. At 1,000 kWh, the same $100 is spread across the smallest usage it can apply to, which is why the average drops so far below the underlying rate. By 2,000 kWh, that fixed $100 is diluted across twice the usage, so it discounts less per kWh and the average climbs back up. These figures come from the educational example EFL above, not a currently offered Power Texas plan — it’s the same usage cliff our bill credit plans guide breaks down.

Warning Signs in an EFL

Bill credits: apply only once usage crosses a set threshold, so they make one average look great and the others worse — read the credit’s fine print, not just the headline rate.

Minimum-usage fees: a flat penalty added when usage falls below a threshold, usually spiking the 500 kWh average specifically.

Tiered pricing: the per-kWh rate itself changes at certain usage levels, so the plan can be cheaper or pricier than it first appears depending on which side of the tier you land on.

Time-of-use or free nights and weekends: the advertised rate only applies during specific hours — usage outside that window is billed at a different, often higher, rate.

Large swings between the three averages: if the 500, 1,000, and 2,000 kWh prices differ by more than a cent or two, the plan is usage-sensitive — model it against your real usage before enrolling.

EFL, TOS & YRAC: What Each Document Covers

Enrolling gets you three documents that work together as your electricity contract.

Electricity Facts Label (EFL). The pricing sheet — average prices at 500/1,000/2,000 kWh, the energy and base charges, TDU delivery charges, contract length, early termination fee, plan type, and renewable content. Read this one first.

Terms of Service (TOS). The full contract conditions — billing, deposits, renewal, and cancellation. The EFL says what you pay; the TOS says how the agreement works.

Your Rights as a Customer (YRAC). Your protections under PUCT rules, including the right to dispute a bill, protection against improper disconnection, and a three-day window to cancel a new enrollment without penalty.

How to Compare Two EFLs

Don’t compare plans by the advertised rate alone. Pull up the EFLs for the plans you’re weighing, find the average price at the usage column closest to your real monthly use, and compare that number — and the plan structure behind it — side by side. A fixed-rate plan and a bill-credit plan can show the same 1,000 kWh average and still behave very differently the month your usage moves; our guide to choosing a plan covers that tradeoff in more depth.

Once the EFL points to a better plan, switching providers takes about ten minutes, with a 14-day window to leave your current contract fee-free.

Why Texans Use Power Texas

We make electricity shopping easier

Texas electricity plans can be difficult to compare. Power Texas brings rates, providers, plan details, and helpful information together so you can understand your options and choose an electricity plan with confidence.

Whether you want to shop on your own or have questions along the way, our goal is to make finding electricity simpler.

Our recommendations are independent

Power Texas may receive compensation from electricity providers when customers enroll through our marketplace. However, commissions, advertising relationships, and other commercial arrangements do not determine our editorial content or recommendations.

Our recommendations are based on our independent assessment of the Texas electricity market and the information we believe is most useful to consumers.

Frequently Asked Questions

It is a standardized one-page disclosure that every Texas retail electricity provider must publish for every plan, in a format required by the Public Utility Commission of Texas (PUCT Rule 25.475). It lays out the plan’s price, fees, contract terms, and renewable content so you can compare plans on equal footing. The EFL, the Terms of Service, and the Your Rights as a Customer document together form your electricity contract.
Those are average all-in prices per kWh if you used exactly that much in a month — not your energy rate and not a range. They differ because fixed monthly charges, like the base charge and the TDU’s fixed fee, get spread across more kWh as usage rises, so the average per-kWh usually drops at higher usage. Read the column closest to your own monthly usage.
The energy charge is just the provider’s price per kWh for the electricity itself. The average price is the all-in number: it folds in the energy charge plus the base charge plus the regulated TDU delivery charges (taxes usually excluded). The advertised rate is often the energy charge or the 1,000 kWh average, which is why you should always check the average at your real usage. Compare current Texas electricity rates by usage level.
TDU (or TDSP) delivery charges are what your local utility, such as Oncor, CenterPoint, AEP Texas, or TNMP, charges to deliver power over the poles and wires. They include a per-kWh charge plus a fixed monthly fee, are regulated, and are passed through with no markup, so they are the same for every provider in your area.
A bill credit applies only when your usage reaches a set threshold, so it makes the average price dip sharply right at that level and jump on either side. For example, a $100 credit at 1,000 kWh might show about 9.5 cents per kWh at 1,000 kWh but about 12.3 cents at 1,400 kWh on the same plan. See our bill credit plans guide for how that cliff works.
The Electricity Facts Label covers the pricing and key plan facts. The Terms of Service spells out the full contract conditions, such as billing, deposits, and cancellation. The Your Rights as a Customer document explains your protections under PUCT rules. All three are provided together and form your electricity agreement.

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