Quick Answer
The Texas Electricity Facts Label (EFL) shows rates at 500, 1000, and 2000 kWh—required by PUC rules. Look for: energy charges, TDU delivery fees (Oncor, CenterPoint), usage credits, and contract terms. Plans advertising 9¢ may cost 14¢ at low usage. Always read the EFL before enrolling.
What Is an Electricity Facts Label?
The Electricity Facts Label (EFL) is a standardized disclosure document required by the Public Utility Commission of Texas for every residential electricity plan.
Think of it as a nutrition label for electricity—it breaks down exactly what you're paying for in a consistent format that makes comparison possible.
Every Retail Electric Provider must provide an EFL before you sign up. The format is identical across all companies.
The EFL contains three critical sections:
- Pricing disclosure
- Contract terms
- Disclosure chart
Understanding the Average Price Section
The most important part of any EFL is the Average Price section, which shows your total cost per kWh at three usage levels:
| Usage Level | What It Shows |
|---|---|
| 500 kWh | Low usage (apartments, efficient homes) |
| 1,000 kWh | Average usage (typical households) |
| 2,000 kWh | High usage (large homes, heavy AC) |
These prices include everything—energy charge, TDU delivery fees, base charges, and any credits or fees.
The 1,000 kWh rate appears on Power to Choose because it represents typical household usage.
If your home uses 2,000+ kWh in summer, pay close attention to that column. Many plans advertise low rates but become expensive at higher usage levels.
Always calculate your expected cost using your actual usage from Smart Meter Texas data.
Energy Charge vs. Average Price: The Critical Difference
One of the biggest traps in Texas electricity shopping: confusing the energy charge with the average price.
| What It's Called | What It Includes | Example |
|---|---|---|
| Energy Charge | Just electricity cost | 8.5¢/kWh |
| Average Price | All costs included | 12.8¢/kWh |
Your actual bill includes TDU delivery charges, base fees, and various adjustments that add 3-5 cents per kWh to your total cost.
When a provider advertises 8.5 cent electricity, they're showing only the energy charge.
Always compare plans using the Average Price column, never the advertised energy charge.
This single mistake costs Texas consumers millions of dollars annually.
TDU Delivery Charges on Your EFL
Every EFL includes TDU (Transmission and Distribution Utility) charges, which cover the cost of delivering electricity through power lines to your home.
These charges are the same regardless of which REP you choose—your TDU is determined by your address:
| TDU | Service Area |
|---|---|
| Oncor | Dallas-Fort Worth |
| CenterPoint | Houston |
| AEP Texas | South/West Texas |
| TNMP | Various areas |
TDU charges typically include:
- Monthly service fee: $4-8
- Per-kWh delivery rate: 4-6 cents
The Average Price calculation includes all TDU fees—making it your reliable comparison number.
Spotting Usage Credits and Tiered Pricing
Many Texas electricity plans use usage credits or tiered pricing that dramatically change your effective rate based on consumption.
Common trap: A plan offers a bill credit when you use exactly 1,000 or 2,000 kWh—making the average price look great at those specific levels but much higher elsewhere.
Warning signs in the EFL disclosure chart:
- "Usage credit applied at 1,000 kWh"
- "Rate increases above 2,000 kWh"
- Large rate differences between usage tiers
Look for plans with less than 2 cents variance across all three usage levels.
Contract Terms and Early Termination Fees
The EFL contract section specifies your term length and early termination fee (ETF).
Typical contract terms:
| Term Length | ETF Range | Best For |
|---|---|---|
| 6 months | $100-150 | Flexibility seekers |
| 12 months | $150-200 | Most households |
| 24+ months | $150-300 | Rate lockers |
Important details to check:
- Contract end date requirements (14-day advance notice typical)
- Fixed vs. variable rate type
- Any automatic renewal terms
Variable rates can change monthly based on wholesale prices—making budgeting difficult.
For most Texas homeowners, 12-24 month fixed-rate plans provide the best balance of price certainty and flexibility.
Renewable Energy Content Disclosure
Every Texas EFL includes a renewable energy disclosure showing what percentage of your electricity comes from renewable sources.
| Category | Typical Percentage |
|---|---|
| Texas statewide average | ~25% |
| "Green" plans | 50-100% |
| 100% renewable plans | 100% wind/solar |
Texas leads the nation in wind power generation, so many plans now offer 100% renewable electricity at competitive rates.
Watch out for misleading "green" marketing:
- Some plans are only 50% renewable while using green branding
- The EFL provides the actual numbers
Pro Tips for EFL Comparison Shopping
Create a comparison spreadsheet with:
- Average price at YOUR typical usage level
- Contract length
- ETF amount
- Renewable percentage
Pay special attention to the disclaimer section:
- Price adjustments for usage below minimums
- Price adjustments for usage above maximums
- Base charges that apply regardless of usage
- Do they last the full contract term?
- Or do they revert to higher prices after an introductory period?
Frequently Asked Questions
Where do I find the EFL for a Texas electricity plan?
- Provide the EFL on their website
- Send it via email before enrollment
What usage level should I focus on when reading an EFL?
- Check Smart Meter Texas data
- Review past 12 months of bills
- Calculate your monthly average
Why is the advertised rate different from the EFL average price?
- TDU delivery fees
- Base charges
- All other costs
Do TDU charges vary between electricity providers?
What does the renewable content percentage on my EFL mean?
- Texas statewide average: About 25%
- 100% renewable plans: Available at competitive prices
Looking for more? Explore all our Texas Energy guides for more helpful resources.
About the author
Consumer Advocate
Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.
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Topics covered
Sources & References
- Public Utility Commission of Texas (Public Utility Commission of Texas): "The PUCT requires standardized Electricity Facts Labels for all residential plans"Accessed Dec 2025
- Power to Choose (Public Utility Commission of Texas): "Power to Choose provides EFL access for all listed plans"Accessed Dec 2025
Last updated: December 31, 2025
