How to Read an Electricity Facts Label (EFL)

EFL Basics

Reading an Electricity Facts Label (EFL) involves understanding several key components that provide information about an electricity plan. Here’s how to read and interpret the main sections of an EFL:

Electricity Price

1. Average Price per kWh: Displayed for different levels of electricity usage in kilowatt-hours (kWh), typically 500 kWh, 1000 kWh, and 2000 kWh. This includes any base charges, usage charges, energy charges, and any transmission and distribution utility (TDU) charges.

2. Base Charge: A fixed monthly charge that may be included in your bill regardless of usage.

3. Usage Charge: A charge that may be present depending on how much or little energy usage you have during one billing cycle.

4. TDU/TDSP Charges: Fees from your designated utility company (CenterPoint, ONCOR, TNMP, AEP) for maintaining infrastructure (poles, wires, etc.) to deliver electricity to your home.

Contract Terms

1. Type of Product: Fixed Rate

2. A fixed rate plan means that your energy charge will stay the same over the entire duration of the contract.

3. A variable rate means that your energy charge can change over the duration of the contract.

4. Be aware, TDU charges can change during the duration of the contract.

5. Contract Term/Length: The duration of the plan, usually in months (6, 12, 24, 36, etc.).

6. Early Termination Fee: The fee charged if you cancel the contract before it ends.

7. If you’re moving and provide sufficient proof of move documents for your provider, then you can have your ETF waived. Examples of proof of move documents are new utility bills in your name at your new address, a bill of sale, or a driver’s license with your new address listed.

Renewable Content

1. Percentage of Renewable Energy: Indicates the portion of the electricity that comes from renewable sources, such as wind or solar power, rather than coal or natural gas.

Additional Information

1. Special Terms: Any specific conditions or promotions associated with the plan.

2. Contact Information: Details for customer service and support.

3. Extra Fees: Details on late payment penalties, disconnection fees, and reconnection fees can be found on a separate document that will be sent to you called your Terms of Service (TOS).

Example Plan Breakdown

Let’s break down an example EFL to see how these components come together:

Electricity Price

1. At 500 kWh: 20.6 cents/kWh

2. At 1000 kWh: 18.2 cents/kWh

3. At 2000 kWh: 17.9 cents/kWh

4. Minimum Usage Charge: $9.95 per billing cycle (if you use less than 800 kWh during a billing period)

5. Base Charge: Not present or explicitly listed in this specific EFL

6. Energy Charge: 13.6894 cents/kWh

7. CenterPoint Delivery Charges: $4.39 per billing cycle and 4.0410 cents/kWh

Contract Terms

1. Fixed Rate

2. Length: 12 months

3. Early Termination Fee: $150.00

Renewable Content

1. Renewable Energy Content: 20%

Fees and Charges

1. TDU Charges: See CenterPoint Delivery charges above.

2. Other Fees: Not present on this specific EFL. Will be available in the TOS.

Additional Information

1. Special Terms: Not present

2. Contact Information: 1-866-RELIANT; email: service@reliant.com

Bill Calculation

Now let’s try and calculate a potential bill using the pricing section of the example above.

1. Let’s say you used 500 kWh in one billing cycle.

2. Since 500 kWh is below the minimum usage limit of 800 kWh, you will have to pay a $9.95 charge.

3. The energy charge is 13.6894 cents/kWh and you multiply it by 500 kWh. This comes out to 6844.7 cents. But you will move the decimal point two spots to the left to change the amount from cents to dollars. This results in $68.447.

4. Add on a mandatory $4.39 CenterPoint charge.

5. CenterPoint also has a per kWh charge, so multiply 4.0410 by 500 kWh. This comes out to 2020.5 cents. But you will move the decimal two spots to the left again. This results in $20.205.

6. Add together the four bolded numbers above, and you get your bill total which is $102.992. It will be shortened to $102.99.

7. To check your work, divide your bill total of $102.99 by 500. This comes out to $0.205984. Move the decimal point two spots to the right to go from dollars to cents, and you get 20.5984 cents. This will be rounded to 20.6 cents, which matches the cent amount for 500 kWh at the top of the example EFL.

By understanding each section, you can make an informed decision about which electricity plan best suits your needs and budget.

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