Electricity Guides
How to Read an Electricity Facts Label
An Electricity Facts Label, or EFL, is where the real pricing details live. Learn how to spot the average price, contract length, usage assumptions, fees, and delivery charges before you choose a Texas electricity plan.
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What an EFL Tells You
The EFL is a standardized summary designed to help Texas shoppers compare plans more clearly. It does not tell you everything about your final bill, but it gives you the most important pricing and contract details in one place.
Average Price at 500, 1000, and 2000 kWh
These sample usage levels show the plan’s average price per kilowatt-hour at specific monthly usage amounts. They are useful for comparison, but they are not a promise that your exact bill will match that number.
Base Charges and Energy Charges
Look for fixed monthly charges, per-kWh energy charges, and any usage-based pricing structure. A plan with a low advertised average may still include fees that affect your bill differently at your household’s usage level.
TDU Delivery Charges
Delivery charges are separate utility fees set by your local Transmission and Distribution Utility. These charges are usually passed through no matter which retail provider you choose, so they still matter when comparing total cost.
Contract Length and Key Terms
Check the term length, early termination language, renewable content, and whether the rate is fixed or variable. These details shape both your short-term price and your longer-term flexibility.
How to Use It
Read the Label Like a Shopper
A smart way to read an EFL is to match the label to your own home, usage habits, and risk tolerance. Instead of focusing on one big number, scan for the details that change what you actually pay.
Match the sample usage level closest to your monthly kWh
Check whether the rate is fixed, variable, or usage-based
Look for monthly fees, bill credits, or minimum usage rules
Review contract term, cancellation terms, and renewable content
Watch For
Common EFL Mistakes
Comparing only the headline rate
The advertised average price can look attractive, but your actual bill depends on how the plan behaves at your usage level and what extra charges apply.
Ignoring delivery fees
TDU charges are part of the total cost. If you skip them, you may underestimate what the plan will really cost each month.
Missing contract details
A low rate may come with a long term, early termination fee, or pricing structure that stops looking competitive once your usage changes.