Cadillac 2006 Escalade EXT Owner's Manual page 305

Press the button at the
end of the shift lever to
enable/disable the
tow/haul mode.
A light on the instrument
panel will illuminate to
indicate that tow/haul
mode has been selected.
The vehicle will automatically turn off tow/haul every
time it is started.
Operating the vehicle in tow/haul when lightly loaded or
with no trailer at all will not cause damage. However,
there is no benefit to the selection of tow/haul when the
vehicle is unloaded. Such a selection when unloaded
may result in unpleasant engine and transmission driving
characteristics and reduced fuel economy. Tow/haul
is recommended only when pulling a heavy trailer or a
large or heavy load.
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