Home › Electric bills › How to read an Electricity Facts Label

How to read an Electricity Facts Label

Updated October 29, 2026 · Compare two plans at your usage

Every retail electricity plan in Texas comes with an Electricity Facts Label, a standard one- or two-page sheet. Providers must show it for every plan they offer without asking for personal information other than a ZIP code (16 TAC §25.475, PUCT retail rules). It is the fastest way to compare plans, once you know what the three prices hide.

The three documents

Electricity Facts Label (EFL): the price, the fees, the contract length and the renewable share.
Terms of Service (TOS): the contract itself, with fees for move-in, late payment and returned checks, the deposit policy, the cancellation fee, and your right to cancel a switch.
Your Rights as a Customer (YRAC): complaints, payment arrangements, disconnection protections and assistance programs.

You get all three when you sign up and whenever they change, and free on request (PUCT §25.475 rule text, PDF).

What every EFL must show

Whether the plan is fixed rate or variable. Indexed plans have been banned for homes since February 1, 2022, and wholesale pass-through plans since September 1, 2021 (16 TAC §25.475, PUCT retail rules).
The average price at 500, 1,000 and 2,000 kWh a month, in cents per kWh, rounded to a tenth of a cent (16 TAC §25.475, PUCT retail rules).
A list of every fee the provider can charge, and whether each is in the average price (16 TAC §25.475, PUCT retail rules).
The contract term and any early termination fee (PUCT §25.475 rule text, PDF).
The plan's renewable share compared with the state average (PUCT §25.475 rule text, PDF).

How the average price is calculated

The average price includes "all recurring charges," except sales taxes and the state gross-receipts reimbursement (16 TAC §25.475, PUCT retail rules). A recurring charge is one expected on every bill, or on three or more bills in any 12 months (PUCT §25.475 rule text, PDF). So the average includes the provider's base charge and the delivery utility's charges, and the EFL must say whether each listed fee is included (16 TAC §25.475, PUCT retail rules). A plan's credit or minimum-usage fee usually shows up as a jump between the three prices.

Average price = (base charge + energy charge × kWh + delivery monthly charge + delivery charge × kWh − credit + fee) ÷ kWh

Worked example, Oncor area, 1,000 kWh, a plan at 9.5¢ per kWh with a $9.95 base charge and delivery of $4.06 plus 6.8673¢ per kWh:

Energy = 1,000 × 9.5¢ = $95.00
Delivery = $4.06 + 1,000 × 6.8673¢ = $72.73
Bill = $9.95 + $95.00 + $72.73 = $177.68
Average = $177.68 ÷ 1,000 kWh = 17.8¢ per kWh

Delivery charges as published by retail providers for October 4, 2026 (Discount Power: TDSP delivery charges, retail provider).

The line that matters most

If the 500, 1,000 and 2,000 kWh prices are far apart, the plan has a credit or fee that depends on usage. A plan that looks cheap at 1,000 kWh can be the most expensive at 999. Run both plans at your own monthly usage in the comparison calculator, and check your lowest and highest months, not just the average. More in plan traps.

"Fixed" doesn't mean every cent is fixed

A fixed-rate plan keeps its price for the whole term, at least three months, except for changes in delivery utility charges, ERCOT or Texas Regional Entity fees, and new laws or regulatory charges (16 TAC §25.475, PUCT retail rules). Delivery charges change several times a year, so a fixed plan's bill can move too. Delivery charges by utility.

Where to find EFLs

The Public Utility Commission runs Power to Choose, its official plan-shopping site (ERCOT Grid Insights: retail market, Nov 2025). Every provider must also post its EFLs on its own site (16 TAC §25.475, PUCT retail rules).

More on your electric bill

Updated October 29, 2026. General information, not legal or financial advice. Rules are quoted from the Public Utility Commission of Texas rules as published; your plan's own Electricity Facts Label and Terms of Service govern your contract.