The Electricity Facts Label (EFL), Decoded

The Electricity Facts Label (EFL) is a one-page document that every Texas Retail Electric Provider (REP) must publish for every plan they sell. It's modeled on the FDA's Nutrition Facts Label — the idea is that consumers can compare plans side by side using a standardized format.

An EFL has 4 sections:

1. Electricity Price — what you pay per kWh at 500, 1,000, and 2,000 kWh of usage (these three sample points are required)
2. Disclosure Chart / Other Key Terms and Questions — contract length, type of product, renewable energy %, early termination fee, recurring charges
3. Description of Charges — the detailed pricing math: base charges, energy charges, bill credits, TDU pass-throughs
4. Terms of Service link — where to find the full legal contract

The EFL is the single most important document when shopping for a Texas electricity plan. It's required to be available before you sign up (online and in print). Every REP, every plan, every renewal — they all have an EFL.

This guide walks through each section, what to look for, and where the gotchas hide.

Why the EFL exists

In 2002, when Texas began retail deregulation, the PUCT realized that consumers couldn't easily compare plans across providers — each REP had different pricing structures, different terms, different fee schedules. Without standardization, "choice" was meaningless.

The PUCT response was the EFL — a mandatory disclosure document with a fixed format. Every plan, no matter how complex, must publish an EFL with the same sections in the same order. In theory, this enables apples-to-apples comparison.

In practice, the EFL has limitations:

• It's still complex enough that most consumers don't read it carefully
• The three required usage levels (500/1000/2000 kWh) don't necessarily match your usage
• Footnotes can hide critical terms (especially bill credits)
• Different plan types (free-nights, time-of-use, prepaid) twist the format in ways that defeat side-by-side comparison

Even so, the EFL is far better than nothing, and Texas is one of only a handful of states with this kind of mandatory disclosure.

EFL Section 1: Electricity Price

The top of every EFL is a small table showing price per kWh at three usage levels:

This is supposed to be the headline number. It's also where bill-credit traps hide.

How to spot a bill credit plan in this section

On a flat-rate plan (no bill credits, no tiered rates), the three numbers will be similar (within ~1¢/kWh of each other), because the only thing varying is the base charge spread across more kWh.

Example flat-rate plan:

• 500 kWh: 14.5¢
• 1,000 kWh: 13.5¢
• 2,000 kWh: 13.0¢

That's a normal, predictable plan.

On a bill-credit plan, the three numbers can look wildly different:

Example bill-credit plan (1,000 kWh threshold):

• 500 kWh: 15.5¢
• 1,000 kWh: 8.5¢
• 2,000 kWh: 11.5¢

That huge drop from 500→1,000 kWh, then rise from 1,000→2,000 kWh, is the bill credit signature. The plan is designed to look cheap exactly at 1,000 kWh but penalize usage on either side. If you see this pattern, dig into the Description of Charges to understand the threshold and credit amount. See The Bill Credit Trap.

What "average price" actually means

The 500/1,000/2,000 averages include TDU pass-through and the monthly base charge — they're meant to represent the total bill divided by kWh, not just the REP's energy charge. So a plan with a "9.9¢/kWh average at 1,000 kWh" actually has a lower energy-charge portion (the REP cut) with TDU baked in.

This is helpful for apples-to-apples comparison across REPs in the same TDU territory. It's misleading for comparing plans across TDU territories (where TDU charges differ).

EFL Section 2: Disclosure Chart

This section answers the plan-structure questions that aren't pricing:

Red flags in this section:

• "Variable" or "Indexed" plan type for residential — your rate can change month to month, exposing you to wholesale electricity prices. After Winter Storm Uri (2021), most providers stopped selling these for residential customers, but they still exist.
• Recurring charges > $0 that aren't clearly explained
• Contract term mismatched to your situation — a 36-month contract is usually NOT a good fit for renters
• "Average % of Renewable Energy" is 0% — you're on a non-renewable plan; if green energy matters to you, look for plans labeled higher

EFL Section 3: Description of Charges

This is the detailed pricing math, where bill credits and TDU pass-throughs are spelled out. It's the section most consumers skip and most importantly need to read.

A typical Description of Charges has:

1. TDU Delivery Charges — what the TDU charges, broken down by customer charge ($/month) and delivery rate (¢/kWh)
2. Energy Charge — what the REP charges per kWh of usage
3. Base Charge (monthly customer charge) — flat monthly fee from the REP
4. Bill Credits (if any) — "Customer will receive a $X credit when monthly usage is between Y and Z kWh"
5. Other charges — anything else (gross receipts tax reimbursement, surcharges, etc.)

The math should let you reconstruct any month's bill if you know your kWh usage. If you can't reconstruct your last bill from the Description of Charges, something's off — either you're misreading or the plan has off-EFL charges (which shouldn't happen but occasionally does).

Specific things to verify in Description of Charges

• Bill credit threshold and amount — written out in plain language
• Whether there are multiple thresholds (some plans have credits at both 1,000 and 2,000 kWh — see The Bill Credit Trap)
• Whether the rate is fixed or adjusts after a promo period
• Whether usage tiers change the rate (some plans charge 10¢ for the first 1,000 kWh, then 12¢ for everything above — this is a "tiered rate plan," subtly different from bill credit but with similar effects)

EFL Section 4: Terms of Service link

A URL or QR code linking to the full Terms of Service (TOS) document. The TOS is much longer (often 5-15 pages) and contains:

• Disconnection policy
• Late payment fees and grace periods
• Dispute resolution process
• Renewal terms (most important — what happens at contract end?)
• Privacy and data-use policies

Most consumers never read the TOS. The two things you should at least skim:

1. Renewal terms — most plans roll to month-to-month at significantly higher rates after the contract ends. Some auto-renew at the same rate. Know which.
2. Disconnection rules — what happens if you miss a payment? Some REPs have grace periods, others don't.

How to use the EFL when comparing plans

Side-by-side EFL comparison takes 5-10 minutes per plan. Here's an efficient checklist:

Time-saver: instead of comparing 5-10 EFLs manually, upload your bill on Power My Casa and we'll auto-parse EFLs and rank plans by your actual usage, not the standardized 1,000/2,000 kWh.

When the EFL is misleading (or incomplete)

A few cases where the EFL underdelivers:

1. Free-nights and free-weekends plans — the EFL's "average price at 1,000 kWh" is calculated using assumed usage ratios (e.g., a standard day/night split). But your household's actual ratio can look wildly different from those assumptions — if you use far more or far less power during the "free" hours, the real effective rate won't match the EFL number.
2. Tiered rate plans — the EFL shows the average at 500/1000/2000 kWh, but doesn't necessarily highlight the tier breaks. A plan with rates of 8¢/kWh for the first 1,000 kWh and 16¢/kWh above could look favorable at 1,000 kWh on the EFL but punishing at 1,200 kWh.
3. Prepaid plans — the EFL format barely accommodates prepaid pricing; you usually need to read the TOS for the full picture.
4. Renewal rates — the EFL is for the current term; what happens at renewal is in the TOS and varies dramatically by REP.

Frequently asked questions

Q: Is the EFL required to be available for every Texas plan?

A: Yes. Every active retail electricity plan in Texas's deregulated market must have a current EFL available to consumers before signup. REPs that fail to provide one are violating PUCT rules.

Q: Where do I find the EFL for my current plan?

A: It's available from your REP — usually on their website (search "Electricity Facts Label" + your plan name) or by calling customer service. PUCT's Power To Choose site also lists EFLs for every active plan.

Q: Is the EFL the same as the Terms of Service?

A: No. The EFL is a short standardized summary; the TOS is the long legal contract. The EFL is required to link to the TOS.

Q: Can the EFL change during my contract?

A: For fixed-rate plans during the contract term, no — the rates are locked. The EFL can change for future customers or at renewal. For variable-rate plans, yes — rates can change month-to-month and the EFL should be updated accordingly.

Q: What if the EFL doesn't match my bill?

A: First, verify you're reading the right EFL (the one for your specific plan and effective date). If the math is genuinely wrong, contact the REP. If the REP doesn't fix it, file a complaint at puc.texas.gov.

Q: Are EFLs available in Spanish?

A: Some REPs publish Spanish-language EFLs. Most do not. The PUCT has discussed mandating Spanish EFLs but hasn't done so. If you read primarily Spanish and the REP doesn't offer one, ask — they're generally cooperative.

Last reviewed May 17, 2026. PUCT EFL formatting requirements update periodically; verify the current required format at puc.texas.gov.