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

How to read an Electricity Facts Label (EFL Guide Texas): every EFL breaks down your electricity rate, contract terms, cancellation fees, and delivery charges — and knowing how to decode it can save you hundreds per year.

The The question many Texas electricity shoppers ask is: how to read electricity facts label Texas documents properly? The answer starts with the Public Utility Commission of Texas (PUCT) requires all electricity providers to provide an Electricity Facts Label (EFL) for every electricity plan offered.

In Texas, you choose your electricity provider. That’s power — but only if you know how to read the documents they give you.

The Electricity Facts Label (EFL) is the standardized disclosure every Texas electricity provider must give you before you sign up.

Most people skip it. Big mistake.

Here’s exactly how to read it — section by section.

What Is an Electricity Facts Label (EFL)?

Learning how to read electricity facts label Texas documents is a critical skill for any Texas electricity shopper in a deregulated energy market.

An EFL is a federally required document (mandated by the Public Utility Commission of Texas) that gives you the key facts about any retail electricity plan before you commit.

Think of it like a nutrition label — but for your electricity bill.

Every Retail Electric Provider (REP) in Texas must provide one. They’re all formatted the same way so you can compare apples to apples.

The 7 Sections of an EFL — What Each One Means

Section 1: Plan Name and Provider

At the top you’ll see the Retail Electric Provider (REP) name, the plan name, and the date the EFL was issued.

Always check the date — EFLs expire and rates change. Make sure you’re reading a current one.

Section 2: Average Monthly Bill

This is the most important section for most people.

The EFL shows your estimated bill at 500 kWh, 1,000 kWh, and 2,000 kWh of usage.

The 1,000 kWh column is the standard reference point — Texas homes average about 1,100–1,200 kWh per month.

Watch out: Some plans look cheap at 1,000 kWh but expensive at 500 kWh. This is a common trick — they include credits that only kick in above certain usage thresholds.

Section 3: Energy Charge

This is the actual rate you pay per kilowatt-hour (kWh) — before delivery charges and fees.

You’ll see it listed in cents per kWh (e.g., 9.5¢/kWh).

This is where fixed-rate vs variable-rate plans differ. Fixed rate stays the same. Variable rate changes monthly with the market.

Section 4: Oncor / TDU Delivery Charges

Even in deregulated Texas, your Transmission and Distribution Utility (TDU) — like Oncor, CenterPoint, or AEP — charges a delivery fee.

This fee is set by the state, not your REP. Every plan in your area has the same TDU delivery charge.

You’ll see it as a flat monthly charge plus a per-kWh charge.

Don’t be surprised — it’s legitimate and unavoidable.

Section 5: Type of Product

This tells you if you’re signing up for a fixed-rate plan, variable-rate plan, or indexed plan.

• Fixed rate: Locked in for the contract term — protection against market spikes
• Variable rate: Changes monthly — can be cheaper short-term but risky in summer heat
• Indexed rate: Tied to a market index — somewhere between fixed and variable

For most Texas homeowners, fixed rate is the safest choice.

Section 6: Contract Term and Cancellation Fee

This tells you how long you’re locked in — typically 6, 12, or 24 months.

The cancellation fee (also called an Early Termination Fee or ETF) tells you what you’ll pay if you leave early.

ETFs typically range from $100–$295. Some plans have no ETF at all.

Always know what you’re signing up for before you commit.

Section 7: Renewable Energy Content

This section shows how much of your electricity comes from renewable sources (wind, solar).

Texas has more wind energy than almost any state — many plans offer 100% renewable options.

Renewable plans don’t always cost more. Worth checking.

Common EFL Tricks to Watch Out For

Some plans use pricing tricks to look cheaper than they are:

• Bill credits at specific usage levels: A plan might offer a $50 credit if you use exactly 1,000–2,000 kWh. Use less and you lose the credit.
• Low rates with high TDU pass-through fees: The energy rate looks cheap, but they’re adding extra charges to the delivery line.
• Introductory rates: Some variable plans start cheap, then spike after month 1.
• Hidden minimum usage fees: Some plans charge a fee if your usage falls below a certain level.

How to Use an EFL to Compare Plans

Step 1: Find your average monthly kWh usage from your last electric bill.

Step 2: Look at the EFL price closest to YOUR usage — not just the 1,000 kWh column.

Step 3: Compare the total average price per kWh at your usage level across multiple plans.

Step 4: Check the contract term and cancellation fee.

Step 5: Decide if renewable energy matters to you.

The lowest average price at YOUR usage level = the best plan for you.

Frequently Asked Questions

What is an Electricity Facts Label in Texas?

An EFL (Electricity Facts Label) is a standardized document required by the Public Utility Commission of Texas. It discloses pricing, contract terms, cancellation fees, and renewable content for every retail electricity plan. Think of it like the nutrition label for your electricity plan.

How do I find my electricity facts label?

Every retail electricity provider in Texas is required to post EFLs on their website. You can also find them on the Power to Choose website (the state’s official electricity comparison tool) or use the energy rate shopping tool at MyUtilitySearch.com — which makes it easier to compare plans side-by-side and connect with a Utility Search expert at (844) 437-9527.

What should I look for on an EFL?

Focus on: (1) the average price per kWh at your typical usage level, (2) whether it’s a fixed or variable rate, (3) the contract length and early termination fee, and (4) any usage thresholds that affect your actual rate.

What is the average electricity rate in Texas?

In 2026, average Texas electricity rates range from about 8¢ to 15¢ per kWh depending on provider, plan type, and location. Shopping plans using EFL comparisons can help you find rates at the lower end.

Final Verdict

The key to understanding how to read an electricity facts label is knowing each section’s purpose.

Once you know how to read an electricity facts label, comparing Texas electricity plans becomes much easier.

Find the Best Texas Electricity Plan

Now that you know how to read an EFL, compare electricity plans side-by-side at Utility Search Marketplace. We pull current EFL data so you can find the lowest rate for your usage level.

More resources:

• Best Fixed Rate Electricity Plans in Texas 2026
• How to Compare Energy Plans and Save Money