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An Electricity Facts Label (EFL) is a detailed document with key information on an electricity plan. It’s important to carefully read an EFL before signing up for a new plan to understand all its components. This guide breaks down the most useful parts of an EFL to help you confidently pick the best available plan.
While shopping on Choose Texas Power with your ZIP code, you can find the Electricity Facts Label listed under plan documents when you click “more details” for a plan. EFLs contain a lot of information that can be difficult to digest all at once. Let’s break down an example by exploring the most important aspects of this Gexa Energy Eco Saver Plus 12 plan. We’ll start with the information on the top part of the EFL.
The average price per kilowatt-hour (kWh) is the rate you pay for energy consumed and the most important part of your electricity bill. Under most electricity plans, there are three usage tiers: 500, 1,000, and 2,000 kilowatt-hours. For example, in this Gexa Energy plan, if you consume between 1,000–1,999 kilowatts of electricity in a month, your rate will be 10.8 cents per kWh.
EFLs typically include a few additional charges to be aware of.
Usage credits are extra discounts applied to your monthly bill based on how much energy you consumed in a given period. The Gexa Energy plan in our example includes a $100 usage credit if your monthly energy usage is above or equal to 1,000 kWh. If you fall within this usage bracket, Gexa will remove $100 from your bill.
This section will state your plan’s rate type. The two main options are fixed rate and variable rate. This example shows a fixed-rate plan, which means the electricity rate will remain the same for the entire contract. In a variable-rate plan, energy rates fluctuate each month based on the overall energy market.
The contract term is how long your electricity plan lasts. Fixed-rate plans usually have term lengths lasting between 12 and 36 months, although some providers also offer shorter options. If you sign up for this plan through Gexa Energy, your contract will last 12 months. On the other hand, variable-rate plans will list a monthly term length in this section and do not lock you into a contract.
This section details whether the plan includes an early termination fee (ETF). Many electric companies charge an ETF if the customer cancels their electricity plan before the contract term is up. This Gexa Energy plan includes a $150 fine if the customer cancels their plan before the 12 months are over. However, there is an exception to this rule. If you move outside your provider’s service area, your provider will waive the penalty. You can also contact your provider to potentially waive the fee in the event of extenuating circumstances, such as a natural disaster or home loss.
This section of the EFL details how much renewable energy content the plan contains. All Texas electricity plans include a certain percentage of renewable content because Texas is a nationwide leader in renewable productions, particularly wind power and solar energy. The Gexa Energy plan in our example is sourced from 100% renewable energy because the company specializes in green plans. Providers typically purchase renewable energy credits on the consumers’ behalf to account for their energy consumption.
An EFL will usually list methods to contact your energy provider at the bottom of the document. This information often includes a phone number, mailing address, email, and operating hours. Contact your provider if you have any questions about your account or electricity bill.
You can use the information on a plan’s EFL to calculate projected electricity costs and determine if an energy plan fits your budget. Here’s how to estimate your monthly electricity bill using the rate in Gexa Energy’s Eco Saver Plus 12 plan and 1,000 kWh of monthly usage.
(Energy charge + TDU charge per billing cycle + TDU charge per kWh) – Usage credit = Total bill
Energy charge: 10.8 cents X 1,000 kWh = $108
TDU charge per kWh: 5.3509 cents X 1,000 kWh = $53.5
TDU delivery charge: $4.39
($108 + $4.39 + $53.5) – $100 = $65.89
If you use an average of 1,000 kWh of energy per month, your average electricity bill will be around $65.89.
