How to Read an Electricity Facts Label

When it comes to shopping for electricity plans in Texas, our number one recommendation is to always, always, always read the Electricity Facts Label before making a decision.

Understanding how to read an Electricity Facts Label is integral to finding and selecting the energy plan that’s right for you.

What is an Electricity Facts Label (EFL)?

In Texas, an Electricity Facts Label (EFL) is a standardized document provided by electricity providers to inform consumers about the details of their electricity plans. They are meant to help shoppers compare plans between providers.

The Public Utility Commission of Texas (PUCT) mandates these documents and standardizes their layout. When you check an EFL, electricity plan details are presented consistently, allowing for easier comparison. Key information, such as the average price kWh and the energy charge, is clearly noted. This standardization gives consumers a better idea of how these plan details impact their bills. While EFLs from different companies may vary slightly, their overall structure looks similar.

How to read an Electricity Facts Label

EFLs include information such as the price per kilowatt-hour, contract terms, cancellation fees, renewable energy content, and customer service contact details. The EFL aims to empower consumers with transparent and comparable information, enabling them to make well-informed decisions when choosing an electricity plan in the deregulated energy market of Texas.

Energy Charge – price per kWh for electricity
Average Price – price per kWh based on 500, 1000, and 2000 kWh usage levels
Base Charge – some companies include monthly base charges regardless of energy use (BKV Energy does not)
Usage Fee – some providers charge you when you use too much or too little electricity (BKV Energy does not)
TDU/TDSP Delivery Charges – fees from your local transmission and distribution utility (TDU). Providers do not set or profit from delivery charges, they go straight to your utility company.
Contract Term – number of months in your contract
Plan Type – indicates whether the plan is fixed or variable rate
Early Termination Fee – fee for canceling your contract early (BKV Energy’s ETF is $20 per remaining month)
Percentage of Renewable Content – amount of electricity from renewable sources (choose between 29% and 100% renewable with BKV Energy)

How to calculate a bill from an EFL

When you examine an Electricity Facts Label, electricity costs can be estimated using this formula:

Energy Bill = kWh Usage x (Energy Rate + TDU Delivery Rate) + TDU Monthly Fee

Click this link to use our custom energy bill calculator. Use it to compare potential bills across competitor EFLs along with your household’s historical monthly kWh usage.

Where to find an EFL

Electricity providers will include links to the Electricity Facts label document on each plan’s listing on their website. After you enroll, you will receive the EFL via paper mail or to your email inbox, depending on your chosen communication preferences.

Why you should read the EFL

Reading the Electricity Facts Label before enrolling is crucial to understanding your expected electricity costs. Before making a decision, pay attention to the energy charge, potential base charges or usage fees, cancellation fees, and other details that may impact your bill. Compare multiple plans to ensure you’re getting the best deal for your needs.

Explore a real BKV Energy Electricity Facts Label

Affordable electricity with BKV Energy

Interested in signing up for a cheap, simple fixed rate plan with BKV Energy? Click this link and enter your zip code to explore prices in your area.

Choose a Bluebonnet plan to enjoy electricity with the following benefits:

$0 monthly base charge
$0 usage fee
$0 early termination fee in first 30 days
No marketing gimmicks
Super affordable fixed energy charge
Decrease your per kWh price mid-contract for free with Reduce Your Rate
Annual customer loyalty payout with ElectroShare Rewards
Severe weather and energy saving tip notifications with Spark Alerts
No interest deferred payment plan with Save Now, Pay Later
Personalized plan renewal services with Contract Consultation

Texans can save up to $800 per year by choosing BKV Energy. Enter your zip code to explore simple, fixed-rate energy plans for homeowners and renters in Texas.

Written by Graham Lumley

Graham Lumley, Digital Marketing Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 8 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.