If you have electricity service in a deregulated part of Texas, you have an Electricity Facts Label — whether you know it or not. It was emailed to you when you signed up, and it contains everything you need to understand your rate, your contract, and your rights as a customer.
What Is an EFL?
An Electricity Facts Label (EFL) is a standardized one-page disclosure document that every licensed Retail Electricity Provider (REP) in Texas must provide to residential customers. It is required by the Public Utility Commission of Texas (PUCT) and must be given to you before you enroll in a plan.
Think of it as the official "contract summary" for your electricity plan — a plain-language snapshot of everything that matters about the service you're about to buy. Just as a nutrition facts label tells you exactly what's in your food — calories, ingredients, serving size — the EFL tells you exactly what's in your electricity plan: the price per kilowatt-hour, contract length, fees, and any early termination penalties. Both are required by law, and both use a standardized format so you can compare across brands.
Why the EFL Matters
Texas's deregulated electricity market has over 140 Retail Electricity Providers offering more than 1,500 plans. Without a standardized disclosure document, comparing plans would be nearly impossible — providers could hide fees in fine print or advertise misleading rates.
The EFL solves this by guaranteeing that every plan discloses the same information in the same format. That means you can pull up two EFLs side by side and make an honest apples-to-apples comparison.
The EFL is the definitive source for:
- Your exact price per kilowatt-hour (kWh) at different usage levels
- Any monthly fees or base charges
- Your contract length and end date
- The exact Early Termination Fee (ETF) you'd owe if you cancel early
- Whether your rate is fixed or variable
- The renewable energy content of your plan
Texas law requires providers to give you an EFL before you enroll. If a provider refuses or cannot produce one, that's a red flag — and a potential PUCT violation.
What's on Your EFL — Section by Section
Every PUCT-compliant EFL contains the following sections, always in this order:
Average Monthly Bill
Shows your estimated total monthly bill at three usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh. This is the best section for quick plan comparisons — it shows the "all-in" price including all fees and delivery charges.
Energy Charge & Monthly Fees
Your base energy rate (cents per kWh) plus any fixed monthly service charges. Watch out for "bill credits" — some plans advertise a low per-kWh rate but only apply a credit if you use a specific amount of energy each month.
TDU Delivery Charges
These are pass-through charges from your local Transmission and Distribution Utility (TDU) — the company that physically delivers electricity to your home. Every customer in the same area pays the same TDU charges regardless of provider.
Contract Term & Type
States whether your plan is fixed-rate or variable, and for how long. Fixed-rate plans lock in your energy charge for the contract term. Variable plans can change monthly. Month-to-month plans have no fixed end date.
Early Termination Fee
The fee you'll owe if you cancel before your contract end date. This is one of the most important sections. It will state either a flat dollar amount (e.g., $150) or a prorated formula (e.g., $20 per month remaining on contract).
Renewable Energy Content
Discloses what percentage of your electricity comes from renewable sources (wind, solar, etc.) versus the general ERCOT grid mix. If a plan is marketed as "100% renewable," this section will confirm it.
How to Find Your EFL Right Now
Your EFL was sent to you when you enrolled, but if you can't find it, here are the most reliable ways to get it:
- Search your email inbox. Search for your provider's name plus "Electricity Facts Label" or "EFL." Enrollment confirmation emails almost always include the EFL as an attachment or link.
- Log in to your online account. Every major Texas provider stores your EFL in your online account. Look under sections called My Plan, Plan Details, Plan Documents, or My Account. It's usually a downloadable PDF.
- Search Power to Choose. The PUCT's official shopping site (powertochoose.org) links to the EFL for every active plan. If your plan is still being offered, you can find the EFL there.
- Call your provider. If all else fails, call your provider's customer service line and ask them to email you a copy of your current EFL. They are legally required to provide it.
Once you find your EFL, save it to your computer or print it out. Also write down your contract end date and add it to your calendar — that date controls when you can switch providers without paying an ETF.
How to Read Your EFL
Start with the Average Monthly Bill Section
Don't start with the per-kWh rate — start with the average monthly bill at the usage level closest to your own. This number includes all fees, delivery charges, and any bill credits, giving you the true cost of the plan. A plan advertising 9¢/kWh may actually cost more than a plan advertising 13¢/kWh once all fees are factored in.
Check the Rate Type
Fixed-rate plans protect you from price spikes but lock you in. Variable-rate plans offer flexibility but can increase dramatically during extreme weather events — a lesson many Texans learned during Winter Storm Uri in 2021. Month-to-month plans are the most flexible but carry the most rate risk.
Find the Early Termination Fee
Scroll to the "Contract / Early Termination" section. Note the exact amount and whether it's a flat fee or prorated. If it's prorated, calculate what you'd owe today by multiplying the monthly amount by months remaining.
Understand Bill Credits
Some plans advertise very low rates but include a monthly "bill credit" that only applies if you use between a specific range of electricity (e.g., 1,000–2,000 kWh per month). If you use less or more than that range, you lose the credit and your effective rate increases substantially. The average monthly bill table at 500 kWh vs. 1,000 kWh will reveal this discrepancy — a big jump in effective rate between those tiers usually means a bill credit is involved.
Frequently Asked Questions
Is an EFL the same as my Terms of Service?
No. The EFL is a one-page summary of the key terms of your plan. Your Terms of Service (TOS) is a longer legal document that covers all the fine print — dispute resolution, billing policies, liability, and more. Both are provided at enrollment. Think of the EFL as the highlights and the TOS as the full contract.
Can my provider change the ETF after I sign up?
No — not for a fixed-rate plan. Once you enroll, your ETF is locked in for the duration of your contract. Providers can change terms when your contract renews, but they must notify you in advance. Always read renewal notices carefully before your plan auto-renews.
Does a month-to-month plan have an EFL?
Yes. All Texas electricity plans — including variable and month-to-month plans — require an EFL. However, because variable plans have no fixed rate, the price shown on the EFL at enrollment may differ from your current rate. Check your monthly bill for your actual current rate.
My EFL shows $0 for the Early Termination Fee. Can I cancel anytime?
Yes — a $0 ETF means there is no cancellation penalty. This is common on month-to-month and some prepaid plans. Just be aware that cancellation procedures still apply: you'll need to contact your provider or your new provider to initiate the switch, and there may be a short processing window (typically 1–3 business days).
Is the rate on the EFL truly the rate I'll pay?
For fixed-rate plans, yes — the energy charge is locked in. However, your total monthly bill will also include TDU delivery charges, which are set by your local utility and can change periodically. The "average monthly bill" section on your EFL already incorporates these charges at the time of enrollment, but small adjustments from TDU rate changes may occur over your contract term.