How to read an Electricity Facts Label (EFL) in Texas
The Electricity Facts Label (EFL) is the standard disclosure every Texas retail electric plan must have. It shows the plan's average price per kWh at 500, 1,000 and 2,000 kWh a month, whether the price is fixed or variable, the contract term, any termination fee and all provider fees. Read it together with the Terms of Service and the Your Rights as a Customer document.
What the EFL is
The Electricity Facts Label (EFL) is a standard fact sheet that Texas rules require for every electricity plan, so you can compare offers on the same terms. Each plan has its own EFL (16 TAC 25.475(g)), each version carries an ID number, and it must print in no more than two pages. Providers must let you see EFLs on their websites without entering personal information other than a ZIP code (16 TAC 25.475(c)(4)). You get it when you enroll, whenever it changes, and free on request at any time (16 TAC 25.475(c)(1)(C)).
Line by line
The rule sets the layout (16 TAC 25.475(g)(6)), so labels look much alike from one provider to the next.
| EFL section | What it tells you | What to check |
|---|---|---|
| Heading | Provider, plan name, service area, date | That it matches the plan you were offered |
| Average monthly use: 500, 1,000, 2,000 kWh | Average price per kWh at each level, rounded to a tenth of a cent | The column nearest your own usage |
| On-peak and off-peak lines (if applicable) | Peak season or hours and the average price in and out of them | Which hours are cheaper; see free nights plans |
| Special charges note (if applicable) | Charges for some customers, such as underground service, not in the average price | How to find out if it applies to you |
| Variable price notice (if applicable) | The price applies to the first billing cycle and may change later | Where to see the plan's price history |
| Type of product | Fixed rate or variable rate | See the next section |
| Contract term | Number of months | When you will need to shop again |
| Termination fee | Yes or no, and how much | The amount and how it is figured |
| Can my price change? | Yes or no, and how | The exact conditions |
| Other fees | A list, or where to find it in the Terms of Service | Late, reconnection and minimum usage fees |
| Pre-pay | Whether you pay in advance | Prepaid rules differ from regular service |
| Renewable content | The plan's renewable share and the statewide average | Only if this matters to you |
| Contact and version | Certification number, contact details, EFL version number | Keep this with your records |
The 500, 1,000 and 2,000 kWh prices
For homes, the EFL must show the total average price at 500, 1,000 and 2,000 kWh a month, in cents per kWh (16 TAC 25.475(g)(2)(C)). For a fixed rate plan, that average reflects all recurring charges, which the rule defines as charges expected on every bill or in three or more bills a year. It leaves out state and local sales taxes and the gross receipts tax reimbursement (16 TAC 25.475(b)(9) and (g)(2)(A)). For a variable plan, the average is for the first billing cycle and includes delivery (TDU) charges that may be passed through (16 TAC 25.475(g)(2)(B)).
These are three snapshots, not a price for every usage level. A plan can rank first at 1,000 kWh and last at 500 kWh. How to use them:
- Find your monthly kWh on a recent bill, for a summer month and a winter month.
- Read the price in the column closest to each month.
- If your usage sits between columns, or the pricing section lists a bill credit or minimum usage fee, copy the charges into the true-cost calculator.
- Later, check your bill: it must show "The average price you paid for electric service this month" (16 TAC 25.479(c)(1)(I)).
Fixed rate or variable price
- Fixed rate. A term of at least three months with the same price every billing period, except for actual changes in delivery charges, ERCOT or Texas Regional Entity fees, or new laws or regulatory actions (16 TAC 25.475(b)(5)). Using the word "fixed" for a plan that does not meet this definition is prohibited (16 TAC 25.475(c)(1)(A)(i)).
- Variable price. The price can change by a method the provider sets. For homes, a variable plan can only be month-to-month (16 TAC 25.475(b)(11)), and the provider must publish its current price and one-year price history (16 TAC 25.475(c)(2)(G)).
- Indexed plans may not be offered to residential customers on or after February 1, 2022 (16 TAC 25.475(c)(3)(F)).
Termination fee
The EFL must state the contract term and any early termination penalty (16 TAC 25.475(g)(4)), and the disclosure chart asks it directly: "Do I have a termination fee or any fees associated with terminating service?" Key limits:
- A month-to-month plan cannot carry a termination fee (16 TAC 25.475(b)(7)).
- If you move, there is no termination fee when you give a forwarding address and, if asked, reasonable proof you no longer live there (16 TAC 25.475(c)(2)(C)).
- On a contract with a termination fee, no fee applies in the 14 days before the expiration date (16 TAC 25.475(e)(2)(C)(ii)).
- When you switch to a new provider, you can cancel without any fee within three federal business days after you receive the Terms of Service (16 TAC 25.474(j)). This right does not apply to a move-in.
The other two documents
Your contract is more than the EFL. The rule defines it as the Terms of Service, the EFL, the Your Rights as a Customer document and your enrollment record, plus a Prepaid Disclosure Statement for prepaid plans (16 TAC 25.475(b)(1)).
- Terms of Service. Lists all fees, the deposit policy and interest, how to end service and any penalties, your right to cancel a switch (in a separate paragraph or box), your right to end the contract without penalty if you move, and a statement that an expiration notice will come at least 14 days before the term ends (16 TAC 25.475(f)).
- Your Rights as a Customer. Summarizes your protections: complaint handling, payment arrangements and deferred payment plans, outage reporting, your right to a meter test, assistance programs, disconnection protections, privacy, language rights and the do-not-call list (16 TAC 25.475(h)).
All three must be in plain language, in paragraphs of no more than 250 words and type no smaller than 10 point. In a dispute over contract terms, any ambiguity is read in your favor (16 TAC 25.475(c)(2)(A) and (F)). To see how the EFL number compares with what Texas homes pay, read what a good rate is.
Common questions
Where do I find a plan's EFL?
On the provider's website. Texas rules require providers to show EFLs online without asking for personal information other than a ZIP code, and you can ask for a copy free of charge at any time.
Which price on the EFL should I use?
Use the column closest to your own monthly usage. If your usage falls between columns, or the plan has a bill credit or minimum usage fee, enter its charges in the true-cost calculator.
Can a fixed rate change?
Only for actual changes in delivery (TDU) charges, ERCOT or Texas Regional Entity fees, or new laws or regulatory actions. A provider may not use the word fixed for a plan that does not meet that definition.
Does every plan have a termination fee?
No. The EFL must say yes or no and give the amount. Month-to-month plans cannot have one, and moving out is not a reason to charge one if you give a forwarding address.
Sources
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