Understanding Your Electricity Facts Label | Electricity Company in Texas | NEC

As a deregulated state, Texans are given the power to choose an electricity provider, so it’s important to understand your Electricity Facts Label (EFL). When deciding on a company, energy rate, or utility plan, the EFL sheet will be your greatest tool to help you avoid any billing surprises.

That’s why we want to help you gain a greater understanding of your Electricity Facts Label so you can make the best spending decisions for your home or business.

What is an Electricity Facts Label (EFL)?With a wide variety of electricity companies across the state that offer a range of advantages, you can find a company that best fits your needs. However, each provider is different and charges various rates for their services.

As additional costs and hidden fees caused increasing confusion among consumers, Texas created a state mandated Electricity Facts Label that utility companies are required to issue for every energy plan. The EFL gives essential disclosures about the rates you’ll pay for different usage levels, information about the term length of your plan, cancellation fees, and whether your rate will be fixed or variable. Understanding this information will help you make a more informed choice when it comes to picking your Texas energy provider.

Electricity Facts Label | Texas Electricity Provider | NEC Co-op Energy

Image credit: Public Utility Commission of Texas

Here’s what’s included in an Electricity Facts Label.

Electricity price

This section shows all the charges billed to a customer, including costs of generation, distribution, transmission, customer service, fuel, and incentives and promotions, if any. This section offers a good way for you to compare your ‘effective rate’ at different monthly usage amounts.

It will generally offer a chart that details the provider’s service areas and the average price per kW/h based on your usage. Depending on the amount of energy you consume, your rates may vary each month.


The contract section contains information about the kind of rate you will receive – fixed, variable, or indexed. Additionally, it will explain any additional fees you may see on your bill.

Sources of power generation

This section tells you where your power is coming from – renewable, nuclear, coal, or gas.

Emissions per kW/h generated

This section details the percentages of emissions released from the sources used to generate your electricity.

It’s important to know exactly what you’re signing up for and what fees you’ll obtain when choosing a new utility provider. By asking for and understanding an Electricity Facts Label, you’ll be able to make a more informed decision and find the provider that best fits your needs. If you’d like to understand the “real” kilowatt rate that you’re paying under your current provider, check out our Real Rate Calculator.



“The History of Electric Deregulation in Texas,” Texas Coalition for Affordable Power, http://tcaptx.com/downloads/HISTORY-OF-DEREGULATION.pdf

“Texas Energy Deregulation Map,” Quick Electricity, https://quickelectricity.com/resources/texas-energy-deregulation-map/

“Everything You Need to Know About an Electricity Facts Label,” Call Me Power, https://callmepower.com/tx/understand/electricity-facts-label

“How to understand your electricity plan,” Choose Energy, https://www.chooseenergy.com/blog/energy-101/understand-electricity-plan/