What an EFL is
In the parts of Texas where you choose your electricity provider, each retail electric provider (REP) must write an EFL for every product it sells. The rule is PUCT Substantive Rule 25.475, and subsection (g) says the label must be unique for each product offered and must contain the information the rule lists. The label is part of your contract along with the terms of service and a document called Your Rights as a Customer.
You are owed a copy. The rule says the contract documents must be given to you at enrollment, again whenever one of them changes, and at any time on request at no charge. A REP that sells plans on its website must show the EFL for a plan without asking for personal information beyond what is needed to see the offer, and the EFL must be printable on no more than two pages.
The price box: three numbers, not one
The top of the label is a table with the average price per kWh at 500, 1,000 and 2,000 kWh of monthly use, each rounded to the nearest tenth of a cent. For a fixed-rate plan, the rule requires the total average price for service reflecting all recurring charges, excluding state and local sales taxes and the state gross receipts tax reimbursement. For a variable-price plan the number is the average price for the first billing cycle and includes any delivery-company (TDU) charges that may be passed through.
Why three numbers? Because many plans charge a flat monthly fee or a credit that applies only above or below a usage level. A flat fee is spread over fewer kilowatt-hours at low use, so the average price per kWh is higher at 500 kWh than at 2,000 kWh. A plan that looks cheapest at 1,000 kWh can be the most expensive at 500. Read the column that matches your own usage, and if your usage swings between seasons, check the price at both ends. The bill estimation guide shows how to turn the three prices into a monthly dollar figure.
The table may also carry on-peak and off-peak prices, a season, or a note about potential surcharges when the plan is time-based. If the table has extra rows, the average prices still apply to the plan as a whole, but your real cost depends on when you use power.
Product type and whether the price can change
The EFL must say specifically whether the product is a fixed-rate or a variable-price product. The rule defines both terms, and it bars a provider from using the word "fixed" to market a product that does not meet the definition. The plan types guide explains what each means.
In the disclosure chart look at the question "Can my price change during contract period?" and the follow-up on how. For a fixed-rate plan the answer still carries one caveat: the rule lets the price move to reflect actual changes in delivery charges, ERCOT or Texas Regional Entity administrative fees, or new government-imposed costs. If the provider passes those through, the label must say that the price in the first billing cycle may differ from the price on the label for those reasons.
Term and the fee to leave
The label discloses the contract length in months, any minimum service term, and the early termination penalty. The disclosure chart asks plainly whether you have a termination fee and how much. Check this before the price: a one-year plan with a high termination fee costs more to leave than a slightly pricier plan with none. A month-to-month contract, which the rule defines as a term of 31 days or less, may not carry a termination fee.
Other fees and the terms of service
The label must list every fee the provider may charge and say whether each is included in the recurring charges behind the average price. Some customers pay a special charge, for example for underground service in part of a delivery area, that is not in the average price; the EFL must say so and say how to find the charge. The full list of fees, the deposit policy and the way to cancel are in the terms of service, which the label points to.
Prepaid, renewable content and the buyback line
- Prepay. A yes or no on whether the product is prepaid or pay in advance. Prepaid plans work differently from a monthly bill and are worth reading in full.
- Renewable content. The percentage of the product that is renewable and the percentage of the statewide average generation mix, side by side, so the claim has a baseline.
- Solar buyback. A yes or no on "Does the REP purchase excess distributed renewable generation?" If you have or plan rooftop solar, this line matters. The buyback guide covers it.
- Version number. Each EFL carries an identification number for its version, so you can tell which edition of the label you were given.
A five-step way to use it
- Find your monthly usage on a recent bill and pick the nearest of 500, 1,000 or 2,000 kWh.
- Compare the average price at that level, not the headline rate in an advertisement.
- Check the product type and whether the price can change.
- Read the term and the termination fee.
- Skim the other-fees line and the terms of service for anything you would not accept, then compare the contract expiration rules.
Questions
Is the average price the price I will pay?
It is the provider's required average at three usage levels for a typical bill under the stated charges. Your actual bill depends on your usage, your delivery area and any charges the label says are outside the average, plus taxes.
Where can I find EFLs for many plans?
Power to Choose, the PUCT's official shopping site, lists plans, and each listing links to its EFL. See powertochoose.org.
Can a provider change the price in the middle of a fixed term?
Not for its own reasons. The rule bars changing the price of a term contract during its term, apart from the pass-through changes described above.
This page is general information, not advice for your situation.