How to Understand Your Electricity Facts Label

An Electricity Facts Label (EFL) is a document that is included in all Texas electricity plans. It contains important information such as your energy rate, additional fees, renewable energy content, and more. While shopping for energy plans on Choose Energy, you can view a plan’s EFL before signing up to make sure it’s a good fit for you.

To find the EFL on Choose Energy, click on “more details” under the plan information card. Then, navigate to “plan documents.” There you’ll find “access the EFL,” with all the information you need to make your choice.

This guide breaks down Texas EFLs to help you better understand your options.

In this guide, we’ll use an example from Gexa Energy to explain an EFL. The most important information is in two main sections: the electricity price and disclosure chart.

Electricity price

Your electricity price is built from a few different components, which you can find at the top of your EFL. The three main elements determining your bill are your energy charge, usage credits (if applicable), and transmission and distribution (TDU) charges.

• Average monthly use: Energy plans typically contain three usage tiers calculated in kilowatt-hours (kWh): 500, 1000, and 2000. The amount of energy you use each month places you into a different usage tier and, therefore, a different average monthly price.
• Average price per kilowatt-hour: The EFL will calculate an average price per kWh according to each usage tier.
• Energy charge: This is your base rate for electricity. The example on this page is for Gexa’s Eco Saver Plus 24 plan.
• Usage credit: A usage credit discounts your bill if you use a certain amount of energy. For example, this plan offers a $100 usage credit when you use 1000 kWh of electricity or more each month. You will not receive the usage credit if you use less than 1000 kWh.
• Transmission and distribution 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. Note that these fees can be adjusted depending on changes from the Electric Reliability Council of Texas.

When comparing plans on our marketplace, the prices are all-inclusive. However, knowing your household’s average energy consumption is important to understand which usage tier you fall into. This will help you determine the cheapest plan for your energy patterns.

Disclosure chart

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

• Type of product: This section will state if the plan’s rate is 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 will charge you a fee if you end your contract before the term ends. This plan, for example, has a $295 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

The end of your ETF should contain ways to contact your provider. You should contact your provider if you have any questions about your electric account and billing.

Energy plans in other deregulated states outside of Texas may differ slightly but should contain the same information. Instead of an EFL, they are often called Terms of Service or Disclosure Statement. Regardless, look for the following details to ensure the plan is a good fit for you:

• Average price per kWh
• Any fees associated with your plan
• The contract length
• Usage or bill credits

If you need assistance understanding your plan’s details, feel free to give us a call to speak with a member of our team. Our energy experts can help explain energy contracts and recommend the best fit for your needs.

How do I know which plan is cheapest?

When you search for plans on our marketplace, you can sort by price to find the cheapest options available. Keep in mind that the prices shown on our marketplace are for an average consumption of 1000 kWh per month. If you tend to use more or less than this amount, read the plan’s Electricity Facts Label to find an average rate best suited to your habits. If you need more assistance finding the cheapest option, call our team of energy experts for help.

What is a good price for electricity?

Electricity rates vary by season and location. Right now, the cheapest electricity rate on our marketplace for the Houston area is 10.7 cents/kWh. This rate is offered by Gexa Energy, 4Change Energy, Express Energy, and Frontier Utilities. Enter your ZIP code to find the cheapest rate for your area.

How can I avoid an early termination fee?

There are a few ways to avoid an early termination fee. The first is to search for a month-to-month variable-rate plan. Since these types of plans do not require a contract, there is no early termination fee. Always check the EFL to ensure there is no fee for canceling a plan early. The other exception to paying an early termination fee is when you move outside of your provider’s service area. If you move, your provider will waive the fee.