The Electricity Facts Label (EFL) is the PUCT-required disclosure on every Texas residential electricity plan. It is a one-page nutrition label that discloses every material term of the contract. Key fields: average price at 500/1000/2000 kWh, energy charge per kWh, fixed monthly fee, base charge, TDU delivery, contract term, cancellation fee. The decoder below walks every line of a typical EFL.
EFL top section: identification and average price
REP name and PUCT license number. Plan name. Energy product description (fixed, variable, indexed, or hybrid). Term length in months.
Average price table at three usage levels: 500 kWh, 1,000 kWh, 2,000 kWh. The three numbers may differ significantly because of bill credits, base charges, and minimum usage clauses. Compare plans at YOUR average usage level.
EFL middle section: charges and credits
Energy charge per kWh: the supply rate the REP is offering. Base charge: a fixed monthly fee charged regardless of usage. TDU delivery charges: pass-through from the TDU. Bill credits: monthly credits applied at specific usage thresholds.
Be cautious of plans with large bill credits at 1,000 kWh that disappear at 950 kWh. If your actual usage is anywhere near a credit threshold, run the math at your real usage, not the advertised average.
EFL bottom section: contract terms and fees
Contract term: 12, 24, or 36 months for most fixed-rate plans. Cancellation fee: the fee charged if you cancel early. Renewal terms: what happens at end of contract (auto-renew at higher rate vs explicit re-shop window).
Minimum usage fee: some plans charge a fee (typically $9.95) if monthly usage drops below 500 or 1,000 kWh. This can significantly affect summer-only households (vacant winters) and snowbird households.
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Quick answers from the editorial desk
How is the average price on the EFL calculated?
When does a bill credit actually apply?
What is a minimum usage fee?
What is the difference between energy charge and base charge?
Further reading