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Every electricity plan in Texas comes with an Electricity Facts Label (EFL), and most people never open it. That’s a mistake, because the EFL is the one document that shows what a plan will actually cost you, not what the ad says it costs.
Key takeaways
- The EFL is a standardized label the Public Utility Commission of Texas (PUCT) requires for every residential plan.
- It shows the average price per kWh at 500, 1,000 and 2,000 kWh, and those averages already include your utility’s delivery charges.
- The advertised rate is usually the best-case number. Compare plans at the usage level that matches your bills.
- Look for bill credits, base charges, minimum-usage fees, contract length and the early termination fee.
What is an Electricity Facts Label?
Think of the EFL as a nutrition label for your electricity plan. The PUCT requires every retail electricity provider to publish one, in the same basic format, so you can compare plans side by side. You’ll find a link to it on the provider’s website, on Power to Choose, and in your welcome packet after you sign up.
An EFL tells you:
- The average price per kWh at 500, 1,000 and 2,000 kWh of monthly use
- The energy charge and any base charge from the provider
- Your utility’s TDU delivery charges (the company that maintains the poles and wires in your area)
- Any bill credits or minimum-usage fees
- The contract term, early termination fee and whether the price is fixed or variable
- The plan’s renewable energy content
Why the advertised rate can be misleading
Providers tend to advertise the lowest of the three average prices on the EFL. Very often that number only applies at one specific usage level, usually because of a bill credit that kicks in once you hit a threshold such as 1,000 kWh.
Here’s how that plays out. A plan can show an average of 9.9¢ per kWh at 1,000 kWh because a $100 bill credit applies at exactly that level. Use 950 kWh in a mild month and you lose the credit, and your effective rate for that month can jump well above 20¢. We break this down in detail in our guide to bill credit plans.
The 3 numbers that matter on an EFL
1. Average price at 500 kWh
This is what you’d pay in a low-usage month, typical for apartments and for spring and fall in many homes. Fixed monthly charges get spread over fewer kWh, so this number is often the highest of the three.
2. Average price at 1,000 kWh
This is the most useful comparison point for an average Texas home in a moderate month. If you only compare one number between plans, compare this one, or better yet, the number closest to your real usage.
3. Average price at 2,000 kWh
This reflects a big house in the peak of summer. It can look great on paper, but it only helps if you actually use that much power for most of the year.
Other EFL fine print to check
- Base charge: a flat monthly fee charged no matter how much you use.
- Minimum-usage fee: an extra charge if you use less than a set amount.
- Price type: fixed, variable or indexed. Variable and indexed prices can rise with the market. Here’s why that matters during grid emergencies.
- Early termination fee: often $150 or more, or a per-month-remaining amount.
- Contract end date rules: your provider must notify you before the term ends. Miss it and you may roll onto a pricier month-to-month rate. Here’s when to start shopping.
How Watt Panda uses the EFL for you
Reading EFLs is literally our job. When you send us your bill, we pull your real usage, check the EFLs for plans available at your address, and calculate what each one would have cost you across a full year, including delivery charges, credits and fees. Then we recommend the plan that fits how you use power.
Helpful official resources: Public Utility Commission of Texas · Power to Choose (official PUCT site)
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Frequently asked questions
Where do I find a plan’s Electricity Facts Label?
On the provider’s website (usually a link labeled “EFL” or “Electricity Facts Label” next to the plan), on PowerToChoose.org, and in your welcome documents after enrolling.
Does the EFL average price include TDU delivery charges?
Yes. The average prices at 500, 1,000 and 2,000 kWh include your utility’s delivery charges, which is what makes the EFL useful for apples-to-apples comparisons within the same service area.
Why is my bill higher than the price on my EFL?
Usually because your usage doesn’t match the level the price was quoted at. If your plan has a bill credit or tiered pricing, using a little more or less than the threshold can change your effective rate a lot. Learn how to read your bill line by line.
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