As of September 1, 2025, all Transmission and Distribution Utilities (“TDUs”) that serve the Texas deregulated energy markets have increased their variable TDU delivery charges. Due to this, the average price you pay for electricity is increasing. Your contract rate (Rhythm Energy Charge) will remain the same.
Local TDU | Prior Rate ($/kWh) | New Rate ($/kWh) | Percentage Change |
|---|---|---|---|
CenterPoint | 4.461¢ | 5.810¢ | 30.2% |
ONCOR | 5.125¢ | 5.603¢ | 9.3% |
TNMP | 6.153¢ | 7.206¢ | 17.1% |
AEP-North | 5.264¢ | 5.905¢ | 12.2% |
AEP-Central | 5.371¢ | 6.040¢ | 12.5% |
Your bill is made up of two basic charges: your energy charge (from Rhythm) and your TDU charges (from your local utility).
Energy Charge: If you are on a fixed-rate contract with Rhythm, this should match your contract rate and does not change throughout the term of your contract. The amount you’ll be billed is based on the amount of electricity used in kWh multiplied by the energy rate on your contract.
TDU Delivery Charges: These charges pay for the maintenance of the poles and wires that deliver electricity to your home and for the meters that measure it. The TDU delivery rates are regulated by the Public Utility Commission of Texas (PUCT).
It’s important to note that while your Energy Charge rate is fixed based on your contract, the TDU charges may vary month to month, because there’s a fixed component and variable component.
TDU delivery charge – base (fixed amount): Regardless of how much electricity you consume during your billing period, the same, flat monthly cost will be charged.
TDU delivery charge – energy (variable based on usage): This is a cents-per-kilowatt-hour rate that is multiplied by how much energy you use during your billing period. This rate varies, depending on which TDU services your home.
On your bill, you see these charges broken out as different line items to show Retail Electricity Provider (Rhythm) and utility (TDU) charges.
Like this example:
The five TDUs in Texas get approval from the Public Utilities Commission of Texas (PUCT) to change their rates throughout each year, but the largest changes are typically March 1 and September 1.
For a breakdown of your individual energy consumption, you can find a breakdown in your Account.
If you have any questions, feel free to contact us.
