Understanding the Texas Electricity Facts Label (EFL)

This is an interactive guide to help you understand the Electricity Facts Label (EFL), the most important document when shopping for electricity in Texas. We’ll learn key concepts step by step and use real-time data from our database to show how prices are calculated, how to recognize a True Fixed plan, and how to avoid hidden surprises in your bill.

What is the Electricity Facts Label (EFL) in Texas?

The Electricity Facts Label (EFL) is the official summary of your electricity plan. It explains how your rate is calculated, what fees apply, and the contract length. Every energy provider must publish an EFL for each plan they offer, so you can compare plans fairly before signing up.

How electricity is generated and delivered — and why it’s important to know this

Electricity begins its journey at power plants, from sources such as natural gas, wind, solar, or nuclear. The energy produced flows into the Texas power grid, where energy providers buy it in bulk (or generate it themselves) and sell it to homes and businesses.

However, delivering that energy to your home requires infrastructure: power lines, poles, and meters. This is handled by a TDU company (Transmission and Distribution Utility).

What is an Energy Provider, and where do I see it on the EFL?

The Energy Provider (also called the Retail Electric Provider or REP) is the company that sells you electricity. You sign a contract with them, and they determine your plan type, contract term, and price per kilowatt-hour (kWh). They are also the ones who send you your monthly bill. On the EFL, you’ll usually see the Energy Provider’s name at the top of the document, along with the plan name.

What is a TDU company, and where do I see it on the EFL?

The TDU company (Transmission and Distribution Utility) is responsible for delivering electricity to your home. If there’s a power outage in your area, you contact your TDU, not your energy provider. Examples include CenterPoint Energy, Oncor, AEP Texas, and TNMP.

TDUs maintain the physical grid and charge a regulated delivery fee that is the same for everyone in their service area. This means the difference between plans comes from what the Energy Provider charges, not from the TDU fees.

Step 1 — Understand the structure of your Texas Electricity Facts Label (EFL)

Now that you know who generates, sells, and delivers your electricity, let’s start analyzing the EFL structure itself. We’ll break it down into three parts to build an example.

Name of the Company

Plan name — Term in months

TDU Company

Version: abcd

PUCT Certificate No. 12345

PART 1 — ELECTRICITY PRICE (Average monthly use)

Average monthly use	500 kWh	1,000 kWh	2,000 kWh
Average price (per kWh)	16.4¢	15.9¢	15.6¢

These three numbers are the expected rates at 500/1,000/2,000 kWh. The providers must disclose an accurate calculation. This is the best way to spot a True Fixed plan vs. a Bill Credit plan.
These averages already include the energy charge + base charges + TDU delivery (taxes typically excluded). That’s why you should always analyze them together as a triplet. This helps you identify Bill Credit plans that manipulate one of the values to appear cheaper.
To understand what these numbers mean in dollars, let’s convert them to estimated monthly bills:
- If you consume 500 kWh, your estimated bill is: 500 × 16.4¢ = $82.00
- If you consume 1,000 kWh, your estimated bill is: 1,000 × 15.9¢ = $159.00
- If you consume 2,000 kWh, your estimated bill is: 2,000 × 15.6¢ = $312.00
These calculations help visualize how costs scale with usage.
For a True Fixed plan, the 500/1,000/2,000 values are usually close to each other. That’s what you see in the example above.
Bill Credit plans often show a “sweet spot.” Example: 500 kWh → 20¢/kWh, 1,000 kWh → 9¢/kWh, 2,000 kWh → 18¢/kWh. They’ll advertise the 1,000 kWh price but not highlight the others.
Free Nights/Days & Weekends plans behave similarly to True Fixed in this averages table, but they are based on assumptions, such as estimating that around 35% of your daily consumption is free. In Part 2 — Charges breakdown, we will find the actual values used for these assumptions.

PART 2 — Charges breakdown

The price disclosure in this section details the main components of your electricity cost:

Base Charge: $ ? per month

Energy Charge: ? ¢ per kWh

TDU Delivery Charge: ? ¢ per kWh

TDU Monthly Charge: $ ? per month

Minimum Usage Charge: if any

This section contains the full details of all plan charges, including both the Energy Provider’s fees (usage + base) and the TDU’s delivery fees. Some providers choose to bundle these amounts together, so remember that the total “Energy Charge per kWh” usually means Energy Provider + TDU Delivery combined, even when it isn’t stated explicitly.
In this same section, you can also identify what type of plan you’re looking at. For example, Free Nights, Free Weekends, or other special programs. Sometimes the plan name makes it obvious (like “Free Weekends 12”), but often it’s less clear (for example “Bright Nights”). Always read this section carefully for any mention of free hours, credits, or special rate conditions.
This section also includes the information needed to understand special plan types:
- Bill Credit plans: show the amount of credit you receive once you use a certain number of kWh. It may sound attractive, but the base energy rate is often much higher than a True Fixed plan.
- Free Nights/Days & Weekends plans: list the specific hours or days when electricity is free. The EFL must also state whether the “free” period includes the TDU delivery charges or only the energy portion from the provider.
- In recent years, companies have introduced new types of plans such as Seasonal Plans (50 % off during summer), “3 Highest Days Free”, and other promotional variations. All these details should appear here in Part 2, but remember, the energy rates for these special plans are almost always higher than a True Fixed plan.
All the special plans mentioned above rely on assumptions about your usage habits to calculate the average rate shown in Part 1 of the EFL. For example: “Free hours window calculated assuming 30 % of total consumption occurs between 9 p.m. and 6 a.m.” Be cautious: every household is different, so your actual bill may not match these assumptions.

PART 3 — Disclosure chart (key terms)

Type of Product ⚠️ “Fixed” — Always verify; not all “fixed” plans are truly fixed!

Contract Term 24 Months

Do I have a termination fee? Yes — $20.00 per whole month remaining

Can my price change during the contract? Yes (see details)

Renewable Content 29% (state avg 35.2%)

This section summarizes key terms of your plan: Contract length, early termination fee, renewable content, and other conditions that can affect your total cost and flexibility.
You’ll often see language like “price may change.” In practice, a provider’s “fixed rate” usually applies to their energy portion only. The TDU delivery charges are separate and can change during your term. Those TDU changes typically affect all customers in the service area, regardless of provider. A few providers may promise to absorb TDU changes, but that’s uncommon. Tip: You can review current TDU delivery rates on the PUCT site: PUCT — TDU Delivery Rates . TDUs typically update these rates ~2× per year.
This part also lists other fees and conditions that may apply:
- Late payment fees, insufficient funds fees, paper billing fees, or autopay requirements
- Connection / reconnection / disconnection fees, or move-out terms
- Deposits, credit checks, and any minimum-usage charges

Step 2 — Use your ZIP code to see a sample EFL with real Texas rates

We’ll build a sample EFL based on the best True-Fixed plans in your area. Provide your ZIP code so we can show a sample that helps you quickly understand what to expect from an EFL. You need to type your ZIP code and the contract length you are looking for to continue.