Why the EFL matters more than ad copy
Texas plans are sold in a competitive market, so marketing pages usually highlight the best-looking number. The Electricity Facts Label (EFL) is the standardized disclosure document where rate structure, base charges, bill credits, and contract terms are spelled out in one place.
If you only compare one ad rate, you can accidentally choose a plan that looks cheap at 1000 kWh but becomes expensive at 1200 or 1800 kWh. The EFL protects you from this mismatch because it shows average price examples at fixed usage points.
Treat each EFL as a pricing contract summary: read it line by line, then run side-by-side comparisons against two or three competing plans before enrolling.
- Use EFL as the source of truth for price mechanics.
- Assume advertised rates are incomplete until verified.
- Compare at your realistic kWh range, not only 1000 kWh.
How to compare 500, 1000, and 2000 kWh correctly
The Public Utility Commission of Texas standardizes average price examples at 500, 1000, and 2000 kWh because many plans include usage thresholds or credits. Those thresholds can swing your effective rate by multiple cents per kWh.
Start with your last 12 months of usage if possible. If your home runs near 1300 kWh in summer and 850 in shoulder months, do not choose a plan solely because it wins at 1000 kWh. You need strong performance across the range you actually live in.
A simple method is to score each plan at each benchmark, then weight them by seasonal usage. A plan that is second-best at each benchmark can still beat a volatile plan that only wins at one point.
- Small apartment: weight 500 and 1000 kWh scenarios higher.
- Typical single-family home: weight 1000 and 2000 kWh scenarios.
- Large home or high AC usage: prioritize 2000 kWh behavior.
The EFL sections people skip (and pay for later)
The line items that cause surprise bills are usually not hidden, but they are easy to ignore: base charges, bill credits with narrow ranges, and early termination fees. Always look for conditions that flip your effective rate if usage changes by only 100 to 200 kWh.
Many plans include minimum usage charges or credits that disappear above or below a threshold. That means a household with variable monthly consumption can pay significantly more than expected over a full year.
Also review contract length and index language for variable products. In unstable wholesale periods, short-term or variable rates can move faster than most shoppers expect.
- Base charge or monthly service fee.
- Bill credit trigger range and exact language.
- Minimum usage fee or other usage-dependent adjustments.
- Early termination fee amount and exceptions.
A repeatable shortlist workflow for real savings
Pick three candidate plans and build a one-page comparison with your expected usage profile, term preference, and risk tolerance. This keeps decisions objective and reduces last-minute churn.
Then run a final pass on contract details: move-in timing, cancellation window, and any fee waivers. Enrollment friction is low in Texas, so spending an extra ten minutes on validation can save hundreds over a contract cycle.
Use this exact workflow annually before renewal and 30 to 60 days before contract expiration. That timing consistently produces stronger options than last-day shopping.