What is an EFL and How to Decipher It

Contract Terms

• Length of Contract -  Refers to the duration of the service agreement and typically ranges from a months, to years.
• Termination Fee - This is a charge imposed if you decide to terminate the contract

Fees and Charges

• Base Charge - A fixed fee billed per period regardless of your electricity usage.
• Transmission and Distribution Utility (TDU) charges refer to the fees associated with delivering electricity from the power generator to your home. Other fees may include charges, for payments or certain payment methods. 

Renewable Content

The Renewable Content section of an Electricity Facts Label (EFL) in Texas provides critical information about the percentage of electricity sourced from renewable resources like wind, solar, hydroelectric, and biomass. This section enables consumers to gauge the environmental impact of their energy consumption, with higher percentages indicating greater use of green energy. It's vital for those who prioritize reducing their carbon footprint and supporting sustainable energy practices. While electricity plans with higher renewable content may come at a premium, they offer long-term environmental benefits and can be influenced by evolving technology, consumer demand, and energy policies. This section is key for consumers looking to make environmentally conscious decisions in their energy consumption, contributing to the broader shift towards renewable energy infrastructure.

NOTE: Additionally there are terms and questions you should read. These include information about billing practices, potential price changes and your rights as a customer.

What to Pay Close Attention To

There are a few aspects you should focus on when reviewing plans. The rate structure and price per kilowatt hour (kWh) have the impact on your bill.

• Consider your electricity usage. Select a plan with rates that align favorably with your consumption level. Some providers change their rates drastically based on how much you energy you might use. Be sure to always know how much you use at different times of year, including summer and winter months.
• The contract length and any early termination fees are factors if you anticipate moving or switching providers before the contract ends.
• TDU charges can vary depending on your location. Are often passed through to consumers. It's important to be aware of these charges as they can significantly impact the cost of your electricity service.
• Lastly keep in mind that some plans may have hidden fees that could increase your bill unexpectedly.

A Few Tips for Using EFLs

Here are some tips, for using an EFL (Electricity Facts Label) to help you make decisions when comparing electricity plans;

1. Compare Plans - Utilize the EFL to effectively compare electricity plans on a basis ensuring you're making fair comparisons.
2. Understand Your Usage - Take into account your electricity consumption as it can greatly assist in selecting the cost effective plan that suits your needs.
3. Consider Seasonal Variations - Keep in mind that certain plans may offer varying rates for seasons or specific times of the day. This information can impact your decision making process.
4. Pay Attention to Details - Read through the print and carefully review any conditions or clauses mentioned in the EFL before finalizing your choice.

Remember the primary purpose of an EFL is to enhance transparency, within the Texas electricity market empowering consumers like yourself to make well informed choices based on their specific requirements and usage patterns. By reviewing and understanding the details provided in an EFL you'll be better equipped to select a plan that offers value for your household and business needs.