Electricity guides

How to Read an Electricity Facts Label (EFL) in Texas

The Electricity Facts Label shows how a Texas electricity plan actually charges you. Here's how to read one and understand what those numbers could mean for your bill.

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The basics

What Is an Electricity Facts Label?

In Texas, an Electricity Facts Label, usually called an EFL, is a standardized disclosure document that explains the pricing and key terms of a retail electricity plan. Electricity providers provide an EFL for each plan so shoppers can better understand how the plan works and compare it with other options.

The Public Utility Commission of Texas (PUCT) sets requirements for the information included in an EFL. While the exact appearance can vary by electricity provider, EFLs generally follow a similar structure and disclose the information consumers need to understand how a plan calculates their electricity costs.

Think of an EFL as the nutrition label for an electricity plan. The advertised rate may get your attention, but the EFL shows the charges, pricing rules, and contract terms behind that rate.

Always open the EFL before you choose a plan. Two plans with similar advertised rates can calculate your bill very differently, and the three average prices at the top are only the starting point.

A worked example

Let's Read a Real Electricity Facts Label

We'll use the Reliant Power On 12 plan in the CenterPoint Energy service area as our example. This is a relatively straightforward fixed-rate plan, which makes it a good place to learn the fundamentals.

We'll start with the actual EFL, then break down where to find the most important information and how the numbers work together to calculate the plan's average price.

How This EFL Is Organized

  1. 01

    Electricity Price

    This is where you'll find the average prices at 500, 1,000 and 2,000 kWh, along with the charges used to calculate those prices.

  2. 02

    Other Key Terms and Questions

    This section points you to the plan's Terms of Service for additional fees, deposit policies and other terms.

  3. 03

    Disclosure Chart

    This is where you'll find the product type, contract term, early termination fee, price-change rules and other required plan disclosures.

Actual Electricity Facts Label

Actual Reliant Power On 12 Electricity Facts Label for the CenterPoint Energy service area, dated June 1, 2026
View full EFL

Plan pricing shown is from the EFL dated June 1, 2026 and is used here for educational purposes. Electricity plan pricing changes over time.

Pricing walkthrough

Start at the Top: How the Plan Calculates Your Price

The three prices at the top of an EFL are examples of the plan's average price at different usage levels. To understand where those numbers come from, look at the charges listed directly underneath them.

Step 1

Read the Average Prices

The average price table from the actual Reliant Power On 12 Electricity Facts Label, showing an average price per kWh of 15.7 cents at 500 kWh, 14.7 cents at 1,000 kWh and 14.2 cents at 2,000 kWh.
Scroll to read the full table →
500 kWh
15.7¢
per kWh
1,000 kWh
14.7¢
per kWh
2,000 kWh
14.2¢
per kWh

Notice how the average price falls as usage increases. The charges underneath the average prices show us why.

Step 2

Find the Charges Underneath

The complete Electricity price section from the actual Reliant Power On 12 Electricity Facts Label: the average prices at the top, followed by a $5.00 per billing cycle base charge, an 8.5556 cents per kWh energy charge, and CenterPoint Energy delivery charges of $4.90 per billing cycle plus 5.1461 cents per kWh.
Scroll to read the full section →

Retail Electricity Provider Charges (Reliant)

  • 8.5556¢ per kWh

    Energy charge

    Per kWh

  • $5.00 per billing cycle

    Base charge

    Flat fee

Reliant is the retail electricity provider. These are Reliant's charges for supplying your electricity.

TDU Delivery Charges (CenterPoint)

  • 5.1461¢ per kWh

    Delivery usage charge

    Per kWh

  • $4.90 per billing cycle

    Monthly delivery charge

    Flat fee

CenterPoint is the TDU. These are CenterPoint's charges for delivering electricity to your home.

Step 3

Run the Math at 1,000 kWh

Now let's calculate the REP and TDU charges at 1,000 kWh to recreate the 14.7¢ average price shown on the EFL.

ReliantYour electricity provider

$90.56
  • Energy charge1,000 kWh × 8.5556¢$85.56
  • Base chargeFlat monthly fee$5.00

CenterPointYour utility (delivery)

$56.36
  • Delivery charge1,000 kWh × 5.1461¢$51.46
  • Monthly delivery chargeFlat monthly fee$4.90
Estimated bill at 1,000 kWh$146.92
Average price at 1,000 kWh$146.92 ÷ 1,000 kWh14.7¢/kWh

This matches the 14.7¢ average price shown at 1,000 kWh on the EFL, which rounds to one decimal place.

Why the average price changes

The fixed monthly charges are spread across more kWh as the amount of electricity you use increases. That's why this plan's average price falls from 15.7¢ at 500 kWh to 14.2¢ at 2,000 kWh. Other plans may include bill credits, minimum-usage fees or time-of-use pricing that change the math more dramatically. That's why the average price alone never tells the whole story.

Plan terms and disclosures

Next, Read the Plan Terms and Disclosures

After you understand the price, move to the Disclosure Chart. This section explains the contract terms, fees and other rules that come with the plan.

The Disclosure Chart from the actual Reliant Power On 12 Electricity Facts Label: Type of Product is Fixed Rate; Contract Term is 12 months; a $150 termination fee that applies through the end of the contract term but does not apply if the customer moves and provides evidence; the price can change only to reflect actual changes in TDSP charges, ERCOT or Texas Regional Entity fees, or new government-imposed costs; it is not a pre-pay product; and the product is 22% renewable versus a 37% statewide average.
Scroll to read the full chart →

This is the Disclosure Chart from the lower portion of the actual Reliant Power On 12 EFL. There are four things to check here.

  1. 01

    Check the Plan Type and Contract Term

    Product type
    Fixed Rate
    Contract term
    12 Months

    The product type tells you how the plan is priced, while the contract term tells you how long the agreement lasts. This plan is a fixed-rate product with a 12-month contract.

  2. 02

    Find the Early Termination Fee

    Early termination fee
    $150

    This is the fee Reliant may charge if you cancel the plan before the contract ends. The EFL says the fee does not apply if you move and provide the required verification.

  3. 03

    Check When the Price Can Change

    A fixed-rate plan does not mean every charge on your bill is frozen for the entire contract.

    This EFL says the price may change to reflect:

    • TDU delivery charge changes
    • ERCOT or Texas Regional Entity administrative fee changes
    • Changes resulting from federal, state or local laws or regulatory actions

    In plain terms: the provider's energy charge won't change during your contract, but the other charges listed above can.

  4. 04

    Scan the Remaining Disclosures

    The rest of the Disclosure Chart covers additional fees, prepaid status and renewable content.

    Other fees
    The EFL may direct you to the Terms of Service for additional fees and account terms. Review the TOS along with the EFL before enrolling.
    Prepaid or advance product
    This plan is not a prepaid or pay-in-advance electricity product.
    Renewable content
    22%Plan renewable content37%Texas statewide average
    The EFL discloses the percentage of renewable energy content in the product and provides the statewide average for comparison.

Beyond fixed rate

Other Pricing Structures You'll See

The Reliant example uses a relatively straightforward fixed-rate pricing formula. Other electricity plans may use different pricing structures or billing models, including bill credits, time-of-use pricing and prepaid service.

  • Bill-Credit Plans

    A bill credit may apply only when your monthly usage falls within a specific range or crosses a certain threshold. That can cause the average price to change sharply when your usage falls just below or above the qualifying level.

    What to check on the EFL

    Look for the exact usage requirement, credit amount and what happens when your usage falls outside the qualifying range.

    How Bill Credit Plans Work

  • Time-of-Use Plans

    The price you pay may depend on when you use electricity. A plan may offer free or discounted electricity during certain hours while charging a different rate during other periods.

    What to check on the EFL

    Look for the exact time periods, the price charged during each period and any days or hours excluded from the offer.

    How Time-of-Use Plans Work

  • Prepaid Plans

    Prepaid electricity plans require you to pay for electricity before you use it rather than receiving a traditional monthly bill. The EFL can help you identify whether a plan is prepaid and understand the pricing and other terms that apply.

    What to check on the EFL

    Look for whether the plan is prepaid, how the electricity price is calculated, and any fees or other terms that may apply.

    Prepaid and No-Deposit Plans Explained

The biggest limitation

The EFL Tells You How the Plan Works, Not Whether It Fits Your Home

An EFL can show you exactly how a plan calculates your bill. But it cannot tell you how much electricity your home will use, or which electricity plan fits your home.

How Much You Use

Your total electricity usage affects what you pay on every plan. Fixed monthly charges, bill credits, usage thresholds and other pricing features can all change the effective price at different usage levels.

When You Use It

On time-of-use plans, the timing of your electricity usage can also affect your cost. Free nights, discounted periods or higher daytime rates only help if your usage pattern fits the pricing structure.

EFL checklist

Your EFL Checklist: What to Check Before You Enroll

Before choosing an electricity plan, use the EFL to answer these questions. The goal is not just to find the advertised rate. It is to understand how the plan will calculate your bill and whether the pricing structure fits your home.

Pricing

  • What is the REP energy charge?
  • Does the REP charge a monthly base fee?
  • What are the TDU per-kWh and monthly delivery charges?
  • Are there bill credits, usage thresholds, minimum-usage fees or other pricing rules?
  • Does the price change based on when I use electricity?

Contract & Plan Terms

  • How long is the contract?
  • What is the early termination fee?
  • Can any part of the price change during the contract?
  • Is the plan prepaid?

Our tip

If you cannot explain how a plan calculates your bill after reading the EFL, do not enroll based on the advertised rate alone.

Questions

Frequently Asked Questions About Electricity Facts Labels

Keep learning

Read the EFL, Then Match It to Your Home

You now know how to read the pricing formula and key terms on an EFL. The next step is using your own electricity usage to compare plans and decide which plan types and providers are worth considering.

These guides can help you move from understanding the EFL to choosing a plan that fits your home.

Personalized electricity guidance

Not Sure How to Read the EFL You're Looking At?

We'll review your usage and the plan you're considering, then explain exactly how it would calculate your bill.

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