Cadillac 2007 Escalade EXT Owner's Manual page 382

Tow/haul is designed to be most effective when
the vehicle and trailer combined weight is at least
75 percent of the vehicle's Gross Combination
Weight Rating (GCWR). See "Weight of the
Trailer" later in this section.
Press the button at the end of the shift lever to
enable/disable the tow/haul mode.
382
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.
A light on the instrument
panel will illuminate to
indicate that tow/haul
mode has been
selected.