What the EFL is
Every electricity plan sold in deregulated Texas must publish a document called the Electricity Facts Label — EFL. It's standardized by the Public Utility Commission. It's one page. Every REP uses the same format.
The EFL is the only document you need to read before signing up. Everything else (websites, sales pages, brochures) is marketing.
The five numbers that matter
1. Average price at 500, 1,000, and 2,000 kWh
These three numbers tell you the effective rate including all charges, bill credits, and TDU delivery, at three different usage levels. If all three are the same, it's a flat-rate plan. If they differ, the plan has tiered pricing, bill credits, or minimum usage fees that change the math based on how much you use.
Find your actual usage (look at your last few bills) and compare the number closest to yours. If you average 950 kWh, use the 1,000 kWh number. If you average 1,400, interpolate between 1,000 and 2,000.
2. Base charges and minimum usage fees
Look for line items like "Base charge: $9.95/month" or "Minimum usage fee: $5.00 when usage is below 1,000 kWh." These show up regardless of how much you use and can flip the math on a plan that looks cheap at high usage.
3. Length of term and early cancellation fee
Stated up front. 12 months, $150 cancellation fee = you owe $150 if you leave before month 12. Know this number before you sign. Moving? Most REPs waive the cancellation fee if you provide proof of move, but not all.
4. Percentage of renewable content
"100% renewable" means the REP buys enough Renewable Energy Certificates (RECs) to cover your usage. It doesn't mean the electrons coming through your wire are green (they're the same mix of natural gas, nuclear, coal, and renewables as the whole grid). But your money is funding renewables proportional to what you use. If that matters to you, this line matters.
5. Renewal and pricing-change notice
How far in advance the REP must notify you of price changes or term renewals. Usually 30-60 days. If you don't act, the REP rolls you into a new plan — often at a worse rate than the one you just finished. Set a calendar reminder for the contract end date.
What doesn't matter on the EFL
Logos. Photos. The provider's company history. The word "competitive." The word "best." The word "savings." Ignore the top half of the page. Go straight to the table of numbers.
The gut check
If the average price at 500 kWh is dramatically higher than the average price at 1,000 kWh, the plan has a bill credit. If you never hit the credit threshold, you'll pay the high rate.
If the average price at 2,000 kWh is dramatically lower than at 1,000 kWh, the plan has tiered pricing that favors heavy users. If you're a light user, you won't see that rate.
Flat-rate plans — where all three numbers are within a few tenths of a cent of each other — are the easiest to reason about and the hardest to get surprised by.