Last updated: October 27, 2026. Rule text, delivery rates and Power to Choose listings checked October 27, 2026.
Every plan sold to Texas homes in the competitive market comes with an Electricity Facts Label (EFL), a standardized sheet the Public Utility Commission of Texas requires under 16 TAC §25.475(g). It shows what the plan costs at 500, 1,000 and 2,000 kWh a month, how the price is built, how long the contract runs and what it costs to leave.
The catch is that those three prices are snapshots at exactly three usage levels, and your bill will almost never land on one of them. I’ll go through the label section by section. Then I rebuild two sample plans with CenterPoint’s real delivery charges, which shows how the plan that looks cheapest at 1,000 kWh can turn into the expensive one at 999 kWh, or at 1,200.
Quick answer
- The three prices at the top are averages that include every recurring charge except taxes, rounded to a tenth of a cent. They’re only exact at 500, 1,000 and 2,000 kWh.
- The real price is in the fine print: energy charge, base charge, TDU delivery charges, and any bill credit or minimum-usage fee.
- CenterPoint delivery is $2.11 + $2.79 a month plus 6.5333¢/kWh, effective Oct 1, 2026 (PUCT rate report).
- Bill-credit plans can show 9.9¢ at 1,000 kWh and still cost more than a plain 11.0¢ plan at most other usage levels. In our example the gap at 999 kWh is $113.88 for one month.
- Also check the contract term, cancellation fee, renewable share, Terms of Service and “Your Rights as a Customer” (YRAC).
What an EFL is, and where to find one
The EFL is one of three contract documents, with the Terms of Service and the YRAC (prepaid plans add a Prepaid Disclosure Statement). Your provider must give you all of them at enrollment, whenever one changes, and free any time you ask (§25.475(b) and (c)). Each plan has its own EFL, and each version carries an ID number.
The easiest place to find them is Power to Choose, which the PUCT calls its “official and unbiased electric choice website.” Every listing links to the plan’s EFL, Terms of Service and YRAC. Open the EFL before you look at anything else. (New to the site? Our step-by-step Power to Choose guide covers the filters worth setting first.)
Reading the label, section by section
1. The header
Provider, plan name, service area and date. Don’t skip the service area. The same plan usually has a separate EFL for each delivery utility (CenterPoint, Oncor, AEP Texas Central, AEP Texas North, TNMP) because delivery charges differ. Houston-area homes need the CenterPoint version.
2. Average price at 500, 1,000 and 2,000 kWh
The rule requires the “total average price” in cents per kWh at these three usage levels, rounded to the nearest tenth of a cent (§25.475(g)(2)(C)). For a fixed-rate plan it must include all recurring charges except sales taxes and the gross receipts tax reimbursement. For a variable plan it only has to hold for the first billing cycle.
Each number is just the total bill at that usage divided by the kWh. Fixed fees get spread thinner as usage rises. On a plain plan, then, the 500 kWh price is usually highest and the 2,000 kWh price lowest. If the pattern looks odd (22.9¢, then 9.9¢, then 15.9¢, say), a bill credit is almost always behind it.
3. Energy charge
This is the provider’s own price for the electricity, in cents per kWh, and it’s the only part competition actually sets. Don’t confuse it with the average price at the top, which also folds in delivery, fees and credits.
4. Base charge
A flat monthly fee, whether you use 300 kWh or 3,000. Plenty of plans have none. Where there is one, small users feel it most: a $9.95 base charge adds about 2¢ per kWh at 500 kWh but only half a cent at 2,000.
5. TDU delivery charges
Your delivery utility (TDU) owns the wires, and every provider in its territory passes its charges through. As of October 1, 2026, CenterPoint charges residential customers $2.11 a month (customer charge), $2.79 a month (metering) and 6.5333¢ per kWh. That’s $37.57 at 500 kWh, $70.23 at 1,000 and $135.57 at 2,000 (CenterPoint rate report; same figures on the PUCT TDU page). Every rider in that rate is broken out in our CenterPoint delivery charges explainer.
Check the EFL’s date against the current TDU rates. Even a fixed-rate plan can change to reflect actual TDU changes (§25.475(b)(5)), so an EFL built on an older delivery rate is already out of date.
6. Bill credits and minimum-usage charges
A bill credit takes a fixed dollar amount off any month your usage crosses a threshold, usually 1,000 kWh. A minimum-usage charge works in reverse and adds a fee when you use less than a set amount. Both make your bill jump at the threshold instead of rising smoothly.
Providers know shoppers compare the 1,000 kWh column, and a credit that starts at exactly 1,000 kWh drags that number down. Read the wording carefully. Most CenterPoint credit plans on Power to Choose today say “at least” or “equal to or greater than” 1,000 kWh, but one says “greater than 1,000 kWh.” At exactly 1,000, those aren’t the same promise.
7. The disclosure chart: term and cancellation fee
The rule fixes the questions in this chart (§25.475(g)(6)). The ones to read closely:
- Type of product: fixed or variable. A fixed-rate plan runs at least three months, and its price can move only for changes in TDU charges, ERCOT or Texas Regional Entity fees, or new laws and regulations.
- Contract term, in months. Month-to-month plans can’t charge a termination fee.
- Termination fee: flat, or so much per remaining month. It can’t be charged if you move and give a forwarding address (§25.475(c)(2)(C)).
- Other fees, or where the Terms of Service lists them, plus whether the plan is prepaid and whether the provider buys back excess solar.
8. Renewable content
The EFL shows the plan’s renewable percentage next to the statewide average, so you can check a “green” claim yourself. Of the 179 English-language CenterPoint plans on Power to Choose when we looked, 46 claimed 100% renewable and the rest ranged from 3% to 37%.
9. Terms of Service and YRAC
The Terms of Service covers deposits, one-off fees, payment arrangements, how to cancel, and your right to rescind a switch within three federal business days without penalty (§25.475(f)). Fixed-rate customers must get at least three expiration notices, the last at least 30 days before the end of contracts longer than four months. Do nothing and you roll onto a month-to-month plan you can cancel any time without a fee (§25.475(e)).
The YRAC summarizes your protections in plain language, from complaints and payment arrangements to meter testing, assistance programs and privacy (§25.475(h)).
Worked example: two plans, real CenterPoint delivery charges
These two sample plans are illustrations, not real products. Plan A’s three EFL prices do match a pattern you’ll find on several real CenterPoint listings today. I write GridPenny from Fort Bend County, in CenterPoint territory, so that’s the delivery rate I use.
| Charge | Plan A (bill credit) | Plan B (plain) |
|---|---|---|
| Energy charge | 15.4¢/kWh | 4.0¢/kWh |
| Base charge | $0 | $0 |
| Bill credit | $125 when usage is at least 1,000 kWh | None |
| CenterPoint delivery | $4.90/month + 6.5333¢/kWh | $4.90/month + 6.5333¢/kWh |
A 4.0¢ energy charge for Plan B isn’t far-fetched. The cheapest plain fixed-rate CenterPoint plans on Power to Choose today show 10.3¢ at 1,000 kWh, which leaves about 3.3¢ per kWh for energy and any base charge once CenterPoint’s $70.23 delivery cost is taken out.
Any month’s bill is (energy charge + 6.5333¢) × kWh + $4.90 + base charge − any credit. At the three EFL usage levels, that gives each plan’s label:
| Usage | Plan A bill | Plan A avg. price | Plan B bill | Plan B avg. price |
|---|---|---|---|---|
| 500 kWh | $114.57 | 22.9¢ | $57.57 | 11.5¢ |
| 1,000 kWh | $99.23 | 9.9¢ | $110.23 | 11.0¢ |
| 2,000 kWh | $318.57 | 15.9¢ | $215.57 | 10.8¢ |
Sort Power to Choose by the 1,000 kWh price and Plan A wins, 9.9¢ to 11.0¢. Now move a little either side of 1,000.
| Usage | Plan A | Plan B | Difference |
|---|---|---|---|
| 999 kWh | $224.01 | $110.13 | A costs $113.88 more |
| 1,000 kWh | $99.23 | $110.23 | A saves $11.00 |
| 1,100 kWh | $121.17 | $120.77 | A costs $0.40 more |
| 1,200 kWh | $143.10 | $131.30 | A costs $11.80 more |
At 999 kWh Plan A misses its credit and the bill is $224.01, more than double Plan B’s $110.13. At 1,200 kWh it gets the credit and still costs $11.80 more, because the 15.4¢ energy charge eats the $125 quickly. Break-even is about 1,096 kWh. Plan A only wins inside a window less than 100 kWh wide.
Over a year, it isn’t close
For a realistic year, I used the average monthly usage of a Texas home in 2025 from EIA retail sales data (residential kWh ÷ customers, statewide).
| Month (2025) | Avg. Texas use | Plan A | Plan B |
|---|---|---|---|
| Jan | 1,186 kWh | $140.03 | $129.82 |
| Feb | 1,043 kWh | $108.66 | $114.76 |
| Mar | 853 kWh | $191.99 | $94.75 |
| Apr | 826 kWh | $186.07 | $91.91 |
| May | 1,018 kWh | $103.18 | $112.13 |
| Jun | 1,284 kWh | $161.52 | $140.15 |
| Jul | 1,479 kWh | $204.29 | $160.69 |
| Aug | 1,508 kWh | $210.65 | $163.74 |
| Sep | 1,297 kWh | $164.37 | $141.52 |
| Oct | 1,080 kWh | $116.78 | $118.66 |
| Nov | 807 kWh | $181.90 | $89.90 |
| Dec | 936 kWh | $210.20 | $103.49 |
| Year | 13,317 kWh | $1,979.64 | $1,461.52 |
Plan A earned its credit in 8 of 12 months and still cost $518.12 more. Most of the damage lands in spring and late fall, when usage dips under 1,000 kWh and nothing softens the 15.4¢ energy charge. Summer brings the credit back, but the extra kWh at 15.4¢ eat it.
A bill-credit plan can still win if your usage sits inside the credit window month after month. You won’t find that out from the 1,000 kWh column. Price your own 12 months of usage against the EFL terms, in a spreadsheet if need be, and you’ll know.
What Power to Choose showed today
I downloaded the full Power to Choose offer list on October 27, 2026 and looked at the English-language plans in CenterPoint’s territory:
- 179 plans: 163 fixed-rate, 16 variable.
- 11 had a bill credit starting at 1,000 kWh, plus two other plans listed under Power to Choose’s minimum-usage fees and credits flag (a time-of-use credit plan and a flat-payment plan).
- 8 of the 10 lowest prices at 1,000 kWh were bill-credit plans. The remaining two were month-to-month variable plans. The lowest of all, 6.2¢, was a credit plan showing 19.2¢ at 500 kWh.
- Plain fixed-rate plans (no credits, no time-of-use pricing, not prepaid) had a median of 13.1¢ at 1,000 kWh across 139 plans.
- Cancellation fees: $150 was the most common flat fee (32 plans), then $175 (22). Many charge per remaining month instead, often $20, and 19 listed $0.
Offers change daily. The pattern doesn’t. If you sort by the 1,000 kWh price and take the top result, you’re probably signing up for a bill-credit plan.
A five-minute EFL checklist
- Check the service area and date, and make sure the TDU charges are current.
- Compare the three prices. A 1,000 kWh price far below both the 500 and the 2,000 means a credit.
- Find the energy charge, base charge and any credit or minimum-usage fee, with the exact threshold wording.
- Note the term and the cancellation fee.
- Price all 12 months of your own usage from past bills or Smart Meter Texas (our Smart Meter Texas guide shows how to download it), and save every document with its version number.
FAQ
Does the EFL price include delivery charges?
For a fixed-rate plan, yes. The average prices must include all recurring charges, and TDU charges are recurring. Taxes aren’t included. For a variable plan, the prices only hold for the first billing cycle.
Can a fixed-rate plan’s price go up?
Only for actual changes in TDU charges, ERCOT or Texas Regional Entity fees, or new laws and regulations that add costs outside the provider’s control (§25.475(b)(5)).
Do I pay a cancellation fee if I move?
No, if you give a forwarding address and, when asked, reasonable proof you’ve moved. There’s also no termination fee in the last 14 days before the expiration date in your renewal notice, or on a month-to-month plan.
How do I get the EFL for my current plan?
Ask your provider. It must send the EFL, Terms of Service and YRAC free on request, and it has to keep each version for four years after the contract ends.
Sources
- PUCT Substantive Rule §25.475, General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers (16 TAC §25.475; current version effective Jan 6, 2022, per the amendment history). Checked Oct 27, 2026.
- CenterPoint Energy Houston Electric Rates Report, 10/1/2026 and PUCT residential TDU delivery charges, as of Oct 1, 2026. Checked Oct 27, 2026.
- Power to Choose (PUCT) and its full offer export, downloaded Oct 27, 2026: 179 English-language residential listings in CenterPoint’s territory.
- U.S. EIA, electricity retail sales data: Texas residential sales and customers by month, 2025. Checked Oct 27, 2026.