Choosing a new electricity plan in Texas can feel like decoding fine print in a foreign language. That’s where the Electricity Facts Label (EFL) comes in. This standardized document breaks down the real costs of an energy plan so you can make apples-to-apples comparisons.
But here’s the catch: not all EFLs are easy to interpret.
In this EFL guide, we’ll show you how to read an Electricity Facts Label in Texas, flag hidden fees, and compare plans with confidence.
What Is an Electricity Facts Label (EFL)?
An Electricity Facts Label, or EFL, is a standardized disclosure that outlines the pricing, fees, and terms of an electricity plan in Texas. It’s like a nutrition label for your energy service — designed to help you understand what you’re signing up for.
Every retail electricity provider (REP) in Texas is required to include an EFL with each plan they offer. The Public Utility Commission of Texas (PUCT) created this rule to make it easier for consumers to compare plans and avoid unexpected charges.
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Why the PUCT mandates EFLs
The Public Utility Commission of Texas (PUCT) requires all retail electric providers to include an Electricity Facts Label with every plan they offer. This rule is part of PUCT §25.475, which ensures that Texans have the information they need to make informed choices in a deregulated market.
“The aim of the Electricity Facts label is to give consumers a clear, informative and accurate guide to the electricity available to them.”
The EFL standardizes how plan details are presented, allowing you to compare electricity plans, rates, fees, and terms without having to dig through pages of marketing language.
How to Find Your Plan’s EFL PDF
Most electricity providers in Texas make their EFLs available right on the plan details page. Look for a link labeled “Electricity Facts Label (PDF)” or “View EFL.” It’s usually located near the pricing or enrollment button.
If you’ve already signed up for a plan, you can also find the EFL in your online account portal or request a copy from customer service. By law, providers must give it to you upon request.
Always read the EFL before enrolling — it’s the most reliable way to know what you’re really paying for.
Why Reading the EFL Matters When Comparing Plans
Electricity plans in Texas often advertise rates that only apply at very specific usage levels. The EFL cuts through the marketing and shows what you’ll actually pay. When you shop Amigo Energy’s plans, you’re able to see the plan’s EFL! Skip reading a plan’s EFL, and you risk signing up for a plan with hidden fees, steep price jumps, or automatic renewals that catch you off guard.
And while it’s tempting to blame high rates on renewables or market gimmicks, the reality is more complex.
“Residential power prices have risen, but so has the price of eggs, and that’s not caused by renewable energy being put on the grid,” said Olivier Beaufils, an Austin-based energy analyst with Aurora Energy Research, in a 2024 interview with the Houston Chronicle.
How to Read an Electricity Facts Label (EFL): An Amigo Energy Use-Case
Now that you know why the EFL matters, let’s break down the key sections line by line. Every Electricity Facts Label in Texas follows the same format, so once you know how to read one, you can read them all. Here is an example of one of our Amigo Energy EFLs:
Electricity Price at 500 / 1,000 / 2,000 kWh
This section shows your average price per kilowatt-hour (kWh) at three usage levels: 500, 1,000, and 2,000 kWh. Rates often shift between tiers, so what you pay depends on how much power you use.
For example, a plan might cost 13.2¢/kWh at 1,000 kWh but jump to 15.5¢ at 500 kWh. EFL pricing includes delivery charges, so what you see is what you pay.
To estimate your monthly bill:
- Check your past usage
- Match it to the nearest tier
- Multiply usage by the listed rate
If you want to avoid the math, try Amigo Energy’s electricity bill calculator to see your estimated cost in seconds.
Base Charges & Usage Credits
Some plans include a fixed monthly fee called a base charge — think of it as the cost of having service, even if you use no electricity. Others offer usage credits, but only if you hit a minimum usage threshold.
For example, you might get a $30 bill credit if you use over 1,000 kWh — but fall short, and that discount disappears.
Watch for:
- Base charges: Flat monthly fees, usually $5–$10
- Minimum usage fees: Extra charges if you use too little
- Bill credits: Discounts that only apply above certain usage levels
These line items can make a big difference in your total cost — especially if your usage varies month to month.
TDU Delivery Charges Explained
TDU (Transmission and Distribution Utility) delivery charges are the fees your local utility collects to deliver electricity to your home. These are set by your utility company (not your electricity provider) and apply no matter which plan you choose.
The good news: EFL pricing includes these charges, so you don’t have to calculate them separately.
Still, it helps to understand your EFL and what you’re paying for. TDU delivery charges usually have two parts:
- Fixed monthly fee (e.g., $3.42 per month)
- Per kWh fee (e.g., 4.1¢ per kWh used)
Even if your Texas electricity rates looks low, high delivery charges can drive up your total bill, especially if you use a lot of power.
Contract Length, Early Termination Fees & Auto-Renew Language
The EFL spells out how long your rate is locked in, usually 6, 12, or 24 months, and what happens if you cancel early.
Many plans charge an early termination fee (ETF), often around $150–$200, if you switch providers before your contract ends.
Also, check for auto-renew clauses. Some plans automatically renew when your contract expires, often at a higher rate.
Before enrolling, confirm:
- The exact contract term (in months)
- Whether there’s an ETF, and how much
- What happens when the contract ends
Knowing this upfront can help you avoid surprise fees — or getting stuck in a plan you didn’t agree to.
Renewable Content vs. State Fuel Mix
ERCOT estimates show that 40% of the country’s renewable energy comes from wind and solar sources alone. Every EFL lists how much of your electricity comes from renewable sources. This is shown as a percentage under “Renewable Content.”
The EFL also shows the Texas state average, so you can see how your plan compares. For example, if your plan offers 100% renewable content while the state average is 31%, you’re choosing a greener option. Lookout for any fine print about offsets vs. direct sourcing.
EFL Hidden Fees & Fine‑Print Texans Should Watch For
Not all electricity plans are as straightforward as they seem. Even with the EFL, some fees and gotchas can sneak in — especially in the fine print.
Look out for these red flags:
- Minimum usage fees – Extra charges if you use less than a set amount (often 1,000 kWh/month)
- Disappearing bill credits – Discounts that vanish if you don’t meet usage thresholds
- Base charges – Monthly fees added on top of your usage rate
- Time-of-use pricing – Higher rates during peak hours (unless you opt in knowingly)
- Auto-renew clauses – Your plan may renew at a higher rate without notice
If something advertised looks too good to be true, check the EFL to see if there’s a catch.
Amigo Energy Sample EFL Walkthroughs
Let’s walkthrough one of Amigo Energy’s EFLs. When shopping plans from Amigo Energy, we share all of the EFLs because transparency is essential.
Fixed-Rate Example: Amigo Simple Choice 24
Here is the Amigo Energy EFL you saw earlier. This plan offers predictable pricing with no time-of-use rates or usage-based bill credits — ideal for households with steady energy use. the EFL must include delivery charges in the total rate, so what you see is the full price — no hidden fees or extra math required.
Amigo’s final kWh pricing factors in several components, including:
- Energy charge: 11.7¢/kWh
- Base charge: $4.95/month
- Minimum usage fee: $4.99 if usage falls below 400 kWh
Other important details on this EFL include:
- Contract term: 24 months
- Early termination fee: $175
- Renewable content: 31%
This plan includes standard utility pass-through charges. While those may change, the energy charge stays locked in.
Time-of-Use Example: Amigo Simply Days Free 36
This plan offers bill credits for electricity used during Day Hours (9 a.m. – 4 p.m.), rewarding households that shift their usage to daytime.
As with our previous example, Amigo’s final kWh pricing factors in several charges. For this EFL, those charges include:
- Energy charge: 17.2¢/kWh
- Base charge: $9.95/month
- Bill credits: Apply only if your meter records usage during Day Hours
- Minimum usage fee: $4.99 under 400 kWh
Other important details of this EFL are:
- Contract term: 36 months
- Early termination fee: $175
- Renewable content: 31%
This plan could lower your costs if you run major appliances during the day — but it depends on your routine and smart meter data.
Electricity Facts Labels in Texas FAQs
What is an Electricity Facts Label?
An Electricity Facts Label (EFL) is a standardized document that outlines the price, fees, contract terms, and renewable content of a Texas electricity plan. It’s designed to help you compare options and avoid surprises.
Are delivery charges included in the EFL price?
Yes. The average price per kilowatt-hour shown in the EFL includes delivery charges from your utility company, so there’s no need to calculate them separately.
How do I know if an electricity plan has hidden fees?
Scan the EFL for red flags like base charges, minimum usage fees, disappearing bill credits, or peak-hour pricing. These costs often appear in the fine print but can significantly impact your bill.
How often do rates change on a variable plan?
Rates on variable plans can change every month based on market conditions. The EFL won’t predict future rate changes, so if you want consistency, a fixed-rate plan is the safer choice.