Electricity Facts Label (EFL)

What is an Electricity Facts Label (EFL)?

The Electricity Facts Label (EFL) provides transparency about electricity plans by detailing:

• The price per kilowatt-hour (kWh) based on usage levels.
• Contract terms, including rate type (fixed or variable) and duration.
• Additional fees such as base charges, early termination fees, and delivery costs.
• Renewable energy content, showing the percentage of electricity sourced from green energy.

This document is issued by all electricity providers in Texas to comply with Public Utility Commission of Texas (PUCT) regulations.

Benefits of Reviewing an Electricity Facts Label

Price Clarity

Helps homeowners understand how much they’ll pay for electricity at different usage levels.

Avoid Hidden Fees

Details additional charges, such as base fees and early termination penalties.

Compare Plans Easily

Provides a standardized format to help consumers evaluate multiple electricity plans side by side.

Why Is an Electricity Facts Label Important for Homeowners?

Understanding the EFL ensures you select a plan that fits your budget and avoids hidden costs. It empowers homeowners to make informed decisions when shopping for electricity in deregulated markets like Texas.

Example of an Electricity Facts Label in Action

A homeowner in Houston consumes an average of 1,000 kWh monthly.
They compare two EFLs:

• Plan A:
  • 500 kWh: 12¢ per kWh
  • 1,000 kWh: 10¢ per kWh
  • Base Charge: $5/month
• Plan B:
  • 500 kWh: 11¢ per kWh
  • 1,000 kWh: 11¢ per kWh
  • No Base Charge

The homeowner chooses Plan A, as their monthly costs would be lower despite the base charge. This decision saves them $15 per month compared to Plan B.

Pros and Cons of an Electricity Facts Label

Pros:

• Ensures transparency about plan pricing and fees.
• Helps avoid overpaying for electricity.
• Makes it easier to evaluate renewable energy options.

Cons:

• Complex details may confuse first-time users.
• Teaser rates can mislead if not read carefully.

Conclusion

An Electricity Facts Label (EFL) is an essential tool for navigating Texas’s deregulated electricity market. By reviewing and understanding the EFL, homeowners can choose the right plan, avoid hidden costs, and maximize their savings.

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