How to Actually Read That Facts Label Before You Pick a Plan

Every Texas light plan is required to come with a one-page facts label that breaks down exactly what you’ll pay — including all fees, delivery charges, and the real average price at three usage levels. It’s actually the most useful thing the state of Texas ever required light companies to produce.

Problem is, nobody reads it. It’s full of numbers, fine print, and terms that seem designed to confuse you. But if you know where to look, you can spot a good deal — or a rip-off — in about 5 minutes.

Here’s how to read it section by section.

The Price Table: This Is What You’re Really Paying

The top of the facts label has a table showing your average price per unit at three usage levels: 500, 1,000, and 2,000 units per month.

This is the most important part of the entire document. Here’s why:

500 units = a small apartment with low usage (one person, not much AC)
1,000 units = an average Texas home or a larger apartment
2,000 units = a larger house or a heavy summer month

The average price at each level includes everything: the base rate, delivery charges, and all fees. It’s the real number you’ll pay per unit, not just the advertised rate.

Why the price changes at different usage levels: Many plans include a flat monthly fee or a “base charge” that stays the same regardless of how much power you use. When you spread that flat fee across 500 units, it adds a lot per unit. When you spread it across 2,000 units, it barely moves the needle.

Example:

Base rate: 10 cents per unit
Monthly fee: $10
At 500 units: 10 cents + ($10 ÷ 500) = 12 cents per unit average
At 1,000 units: 10 cents + ($10 ÷ 1,000) = 11 cents per unit average
At 2,000 units: 10 cents + ($10 ÷ 2,000) = 10.5 cents per unit average

If you’re a low-usage customer, plans with high monthly fees hit you harder. If you’re high-usage, a lower per-unit rate matters more even if the monthly fee is higher.

How to use this: Figure out which usage level is closest to yours. If you don’t know your usage, 1,000 units is a safe estimate for most Texas apartments and homes. Compare the average price at YOUR usage level across plans, not just the headline rate that the company advertises.

The Charges Breakdown: Where the Fees Are Hiding

Below the price table, you’ll see a breakdown of what’s included in that average price:

Energy Charge

This is the per-unit rate for the actual power. It’s what the company advertises and what they want you to focus on. But it’s not the whole story.

Delivery Charges

This is what the transmission company (the one that owns the wires) charges to deliver power to your home. Every plan includes these charges, but they’re displayed differently:

Some plans include delivery charges in the advertised rate
Others show them separately

When comparing plans, always use the “average price per unit” from the price table, which includes delivery charges. Don’t compare one plan’s energy charge to another plan’s total price. That’s an apples-to-oranges comparison.

Base Charge or Monthly Fee

A flat dollar amount you pay every month regardless of usage. This might be called a “customer charge,” “minimum charge,” or “base charge.” It ranges from $0 to $15 depending on the plan.

Plans with no monthly fee usually have a slightly higher per-unit rate. Plans with a monthly fee often have a lower per-unit rate. Do the math at your usage level to see which actually costs less.

Usage Credits

Some plans offer credits when you hit certain usage levels. A common one: “Get a $50 credit when you use between 1,000 and 2,000 units.” This makes the plan look amazing at that specific usage level and much worse if you’re above or below the sweet spot.

Watch for these. A plan that’s cheap at 1,000 units because of a credit might be expensive at 800 or 1,200 units. If your usage varies month to month (and it will), the credit might only help you 3-4 months of the year.

Contract Terms: What Happens If You Leave Early

The facts label tells you:

Contract length: How long you’re committing. Common options: month-to-month, 6, 12, or 24 months.
Early termination fee: What you pay if you cancel before the contract ends. Ranges from $0 to $300. Some plans charge a flat fee. Others charge per month remaining (like $20 per month left on the contract).
What happens at the end: When your contract expires, most companies switch you to a month-to-month variable rate that’s usually much higher. Set a reminder to shop for a new plan before your contract ends.

Renewable Energy: What the Percentage Means

The facts label shows what percentage of your plan comes from renewable sources. You’ll see something like “15% renewable” or “100% renewable.”

Worth knowing:

All Texas plans include some renewable energy because the state has a lot of wind power on the grid
“100% renewable” plans usually cost 0.5-1 cent more per unit. The light company buys renewable energy credits to match your usage.
This doesn’t mean your specific lights run on wind power. It means the company is supporting an equivalent amount of renewable generation. The electrons coming through your wires are the same regardless.

If you care about renewable energy, look for plans labeled 100% renewable. If budget is your priority, the standard mix is fine and usually cheaper.

The Fine Print: What to Scan For

At the bottom of the facts label, there’s usually a paragraph or two of terms. Scan for these:

Rate Changes

If the plan is variable, the fine print will say how and when the rate can change. Some variable plans have caps (the rate can’t go above X cents). Most don’t. If there’s no cap, your rate can theoretically go as high as the company wants.

Autopay Discount

Some plans offer a lower rate if you set up automatic payments. The facts label will show both the autopay and non-autopay rates. If the plan’s great rate requires autopay and you don’t set it up, you’re paying more than you expected.

Minimum Usage Fees

A few plans charge extra if you use less than a minimum amount. If you’re in a small apartment and use under 500 units, check for this.

How to Compare Plans Like a Pro

Now that you know what’s on the label, here’s the process:

Estimate your monthly usage. Check old bills if you have them. Otherwise, 1,000 units for an apartment, 1,200-1,500 for a house.
Compare the average price per unit at YOUR usage level. Not the advertised rate. The average price from the price table that includes everything.
Check the contract length and cancellation fee. Make sure you can commit to the contract period.
Look for usage credits that distort the price. If the plan is only cheap at exactly 1,000 units, it might not be cheap for you.
Set a reminder for when the contract ends. Don’t let them switch you to an expensive month-to-month rate.

You can compare plans at your address right now — enter your ZIP and we’ll show you the real costs side by side.

Why This Matters More Than You Think

The difference between a 12-cent plan and a 15-cent plan at 1,000 units per month is $30/month. That’s $360/year. Over a 2-year lease, that’s $720.

Five minutes reading the facts label before you sign up can save you hundreds of dollars. The numbers are all right there. You just have to know where to look.

Bottom Line

The facts label is your cheat sheet. Look at the average price per unit at your usage level (not the advertised rate), check for monthly fees and usage credits that skew the numbers, and make sure you can handle the contract length and cancellation fee.

Don’t let the numbers intimidate you. This is a one-page document designed to protect you. Use it. And if you want us to do the comparison for you, enter your ZIP and we’ll show you the real costs.

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).