How to Understand Your Electricity Facts Label

An Electricity Facts Label (EFL) is a document that contains key details about your Texas energy plan, including price, rate type, additional fees, contract length, and more. Understanding this document can help you select an energy plan that comfortably aligns with your energy needs and budget.

You can access the EFL for every plan on Choose Energy by clicking on “More details” under the plan information card. Then, navigate to “Plan documents.” There you’ll find “Access the EFL,” which will have all the information you need to make your choice.

Picking the right energy plan starts with understanding the fine print. There are a few main sections in your EFL that contain the most important information about your plan. Check out this example from Gexa Energy, one of our leading energy providers.

Electricity price

Your electricity price is typically made up of three elements: energy charges, usage credits (if applicable), and utility delivery charges. This is usually the first section of your EFL.

• Average monthly use: Energy plans typically contain three usage tiers calculated in kilowatt-hours (kWh): 500, 1,000, and 2,000. The amount of energy you use each month places you into a specific usage tier, resulting in a different average monthly price for each tier.
• Average price per kWh: This line calculates the average price per kWh for each usage tier, including delivery fees and any applicable usage credits. Use this metric to determine if the plan offers a good price for your usage tier.
• Energy charge: The energy charge is your base rate for electricity. This example for Gexa Energy’s Eco Saver Plus 12 plan costs 16.55 cents per kWh.
• Usage credit: A usage credit provides a discount on your bill if you use a certain amount of energy. This particular plan offers a $125 usage credit when you use 1,000 kWh of electricity or more each month. Due to this bill credit, the average price for the 1,000 and 2,000 kWh tiers is much lower than the 500 kWh tier.
• Transmission and distribution utility (TDU) charges: Your utility company charges a fee to deliver electricity to your home. This comes in two forms: a set base charge and a rate per kWh used in the billing cycle. These fees are adjusted twice a year in response to changes from the Electric Reliability Council of Texas (ERCOT).

The plan prices listed on our marketplace are all-inclusive, except for local and state taxes. Remember to factor taxes into your budget when planning for your electricity bill.

Disclosure chart

The disclosure chart answers commonly asked questions and provides more details about your plan.

• Type of product: This section lists the plan’s rate type. The most common options are fixed or variable.
• Contract term: Here, you will find the length of your contract. Texas energy plans typically last between 12 and 36 months.
• Termination fee: Most providers charge an early termination fee (ETF) if you end your service before your contract is up. This plan, for example, has a $150 penalty for terminating your service early.
• Renewable content: You can check the percentage of renewable energy included in your plan. This Gexa Energy plan is 100% renewable.

Contact information

Your energy provider is your main point of contact for questions regarding your electric account and billing. This section provides information on how to contact your provider if you have questions.

Note: If you experience a power outage, contact your utility company, which is listed in the top right-hand corner, to restore service. Don’t contact your electricity provider.

How do I find the cheapest plan?

The best way to find the cheapest plan is to search according to your average energy usage. Use the “home size” filter on our marketplace to shop according to your usage tier and browse plans aligned with your energy needs.

What is a good price for electricity?

A good price varies by location, time of year, and your home size. That being said, try to find a rate that lands somewhere between the lowest and the average in your area. The cheapest rate may not always be the best fit for your needs, so consider prioritizing compatibility over price.

How can I avoid an early termination fee?

Most energy contracts include an ETF, other than month-to-month plans. If you sign a contract, pick a length that you can reasonably commit to. If you don’t feel like you can commit to a contract, opt for a variable-rate plan that lets you switch providers without penalty.