How to Read an Electricity Facts Label

What is an Electricity Facts Label?

The Electricity Facts Label is a standardized disclosure document required by the Public Utility Commission of Texas (PUCT) for every retail electricity plan sold in the deregulated Texas market. Think of it as the nutrition label for your electricity plan — it must be publicly available before you sign up.

You can find EFLs on PowerToChoose.org by clicking any plan's "Facts Label" link, or directly on a provider's website. WattPal downloads and parses every EFL on PowerToChoose daily using AI, so you never have to read them manually.

The benchmark price table — the most important section

Every EFL shows an Average Price per kWh at three usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh per month. This is the single most important part of the label, and also the most misunderstood.

Providers may emphasize one of the three benchmark numbers, often the 2,000 kWh rate. A plan advertised as "5.9¢" can differ at another usage level. Compare the benchmark with the condition and usage that apply to your household.

What the prices actually include: The average price at each level is all-in — it includes the energy charge, your TDU (utility) delivery charge, any monthly customer fee, and any bill credits. It does not include one-time enrollment fees or sales tax.

How to use the table: Find the column closest to your typical monthly usage. If you use 1,800 kWh on average, the 2,000 kWh column is your best proxy — but it won't be exact because the benchmark assumes flat usage, while real usage swings seasonally. That's exactly why WattPal runs the math against your actual 15-minute interval data.

Bill credit traps ⚠️

Some Texas electricity plans can look cheaper at one benchmark usage level because a bill credit has a usage condition. A bill-credit condition works like this:

• The plan charges a normal energy rate at all usage levels.
• It may give a $X bill credit only when usage meets the condition stated in the EFL.
• A benchmark price reflects its stated usage level; it does not establish eligibility at another level.
• Each billing cycle must be checked against the plan's published condition.

Illustrative example: A plan might show 14.1¢ at 500 kWh, 14.0¢ at 1,000 kWh, and 6.5¢ at 2,000 kWh. That dramatic drop may reflect a credit that applies at or above a stated threshold, or within a stated usage range; the EFL's condition controls. Do not assume the benchmark proves eligibility for every usage level. Use the bill-credit trap guide and eligibility calculator →

Time-of-use (TOU) and free-window plans

Free nights, free weekends, and free daytime plans are a category of Time-of-Use (TOU) plans. The EFL will state the specific hours the free window applies and what the paid energy rate is outside that window.

Common free-window types in Texas

The benchmark problem with TOU plans: The EFL assumes a standard free-window usage fraction (e.g., 35% of usage falls in the free window) when calculating the average price. Your actual split almost certainly differs. If your nights are busier than average, a free-nights plan will beat the benchmark. If you're rarely home at night, it'll underperform.

Base charge and customer charge

Many plans charge a flat monthly fee regardless of how much electricity you use. On the EFL, this appears as "Base Charge," "Customer Charge," or "Monthly Service Fee." It's separate from your energy rate.

A $9.95/month base charge adds roughly 1¢/kWh to your effective rate if you use 1,000 kWh — but nearly 2¢/kWh if you use 500 kWh. The EFL benchmark already folds this into the average price at each usage level, so you'll see its effect in the 500 kWh column. Low users should pay special attention to this line.

Your TDU also charges a customer fee. Oncor charges $4.06/month; CenterPoint charges $4.90/month. These TDU fees are included in the EFL's average price but are not charged by your REP — they flow through your electricity bill regardless of which plan you choose.

One-time and hidden fees

The EFL benchmark prices do not include one-time fees. These must be disclosed in the EFL fine print but are easy to miss because they don't affect the headline ¢/kWh number.

• Enrollment / connection fees — Some plans (particularly broker-channel plans) charge $25–$99 to enroll. This can erase months of savings on a plan that otherwise looks cheap.
• Deposit requirements — Providers may require a deposit for customers without established credit history. The EFL must disclose whether a deposit may be required.
• Disconnect / reconnect fees — Charged if your account becomes delinquent. Not plan-specific but disclosed on the EFL.

Early termination fees (ETF)

Fixed-rate plans almost always charge an early termination fee if you cancel before the contract ends. The EFL must disclose the exact ETF amount or formula.

ETFs vary widely:

• Flat fee — $150–$250 regardless of when you cancel. Common on 12-month plans.
• Per-month remaining — e.g., $20 × months left. Canceling at month 6 of a 12-month plan costs $120.
• No ETF — Month-to-month plans and some promotional plans carry no penalty; their rates and terms vary.

Always factor the ETF into your decision, especially if you might move. A plan with a $175 ETF needs to save you more than $175/year vs. your current plan to be worth switching to.

Auto-pay and paperless discounts

Some plans require auto-pay and paperless billing to receive the advertised rate. The EFL should state when the price is conditional on these requirements; read the plan's exact wording.

If you don't enroll in auto-pay, your actual rate will be higher than the EFL shows. This is a legal requirement to disclose but easy to overlook. WattPal's fine-print flags highlight when a plan has auto-pay conditions.

Contract length

The EFL states the contract term — for example, a fixed number of months or month-to-month. Longer contracts may offer different rates and can carry ETFs; compare the stated terms.

In Texas's volatile electricity market, 12-month fixed-rate plans tend to be the sweet spot for most households — enough price certainty to plan around, without a multi-year lock-in.

Renewable energy percentage

The EFL discloses the fuel mix — what percentage of the plan's electricity comes from renewable sources (wind, solar, etc.) vs. natural gas, coal, or nuclear. "100% renewable" plans are common in Texas and don't always cost more, because Texas has abundant wind generation.

RECs vs. matched generation: Some plans use Renewable Energy Certificates (RECs) to claim 100% renewable status without delivering electrons generated by a wind turbine to your home. This is legal and standard practice in the industry — the grid delivers the same electrons regardless. If you care about additionality, look for plans that explicitly invest in new renewable capacity.

How WattPal uses EFLs

Editorial methodology: WattPal explains EFL conditions from the published label and identifies assumptions; personalized results remain estimates and do not replace provider terms.

WattPal downloads every EFL on PowerToChoose daily and uses Google Gemini AI to extract the exact rates, fees, TOU windows, fine-print flags, and conditions from each PDF. Then, when you upload your SmartMeter CSV, WattPal:

1. Parses your 15-minute interval data to calculate your real monthly usage profile — including how much usage falls in each TOU window.
2. Applies each plan's exact energy rate structure (not the benchmark) to your actual usage month by month.
3. Adds your TDU delivery charges (which are the same regardless of plan) to get a true all-in monthly cost.
4. Adds any one-time enrollment fees to the annual total so they're reflected in the ranking.
5. Flags bill credit traps, auto-pay requirements, ETFs, and other fine print so you can make an informed decision.

The result is a ranked list of every fixed-rate plan on PowerToChoose, sorted by your actual projected annual cost — not a benchmark that may not match how you use electricity.