Tim Tsang · Independent Ambit Consultant · Texas

Texas home electricity guides · Last reviewed 2026-10-23

How to read an Electricity Facts Label in five minutes

Every Texas electricity plan has an Electricity Facts Label, or EFL. It's the one page that shows what a plan really costs. Here's what to look at first.

Three prices, three usage levels

The EFL shows an average price in cents per kWh at three amounts of use. For homes, those are 500, 1,000 and 2,000 kWh a month.

Pick the number closest to what your home uses. A plan that looks cheap at 1,000 kWh can cost more at 500 or 2,000.

What the average includes

The average price includes all recurring charges, including delivery charges from your local utility that are passed through to you. It leaves out sales tax.

The rule also notes that some customers pay a special charge that isn't in the average. If the EFL lists one, read what triggers it.

Length of the plan and the cancellation fee

The EFL must show how long the plan lasts and any early termination fee. Write both down for every plan you compare.

Fixed rate doesn't mean nothing can change

On a fixed-rate plan, the price is the same in every billing period of the term. The one exception: it can change to reflect actual changes in utility delivery charges, ERCOT fees, or new laws and regulations.

About Ambit's plans

Want a second opinion on your plan?

Email me your Electricity Facts Label or a recent bill and I'll walk you through it. Or see Ambit's home plans for your ZIP.

See Ambit's plans for your ZIP

Or email me: tim@txpowercheck.com

Sources

  1. 16 TAC ยง25.475, Texas rule on retail electric products and contracts (Cornell LII copy)

Contact

Email tim@txpowercheck.com

Phone (469) 389-1104

Mail 3400 Coit Rd, PO Box 260265, Plano, TX 75026