Last Updated on February 9, 2023 by Mary Pressler
Featured Electricity Plan: Rhythm Two Months Free 24 Plan
Free electricity plans can help you save on monthly power bills when chosen properly. Here we will discuss the Rhythm Two Months Free 24 Plan, which gives you two November bills for free over a 24-month service period. This plan is ideal for homes using electric heating systems, and properties with a high winter consumption in general.
How Does the Two Months Free Plan Work?
If you sign up for the Two Months Free 24 Plan, Rhythm gives you a fixed kilowatt-hour price during 24 months. In this period, Rhythm will give you two power bill credits equivalent to a month of consumption, which are determined as follows:
- In December 2023, you get a credit equivalent to your November 2023 consumption.
- In December 2024, you get a credit equivalent to your November 2024 consumption.
The bill credit received in December is equivalent to the sum of energy charges and transmission/distribution charges paid in November. Note that the bill credit does not cover other charges such as taxes, and you must be up-to-date on your payments to get the benefit.
The following table breaks down the energy and TDU charges included in the Two Months Free 24 Plan, assuming your home is located in the Oncor service territory:
|Electricity Plan Components||Amount Charged|
|Base Energy Charge (Rhythm)||$8.95 per month|
|Energy Charge (Rhythm)||9.3444 cents/kWh|
|Base TDSP Charge (Oncor)||$3.42 per month|
|Delivery Charge (Oncor)||4.4008 cents/kWh|
*TDSP stands for Transmission/Distribution Service Provider (Oncor in this case). You may also find the equivalent term TDU, which stands for Transmission and Distribution Utility.
Rhythm will not modify energy charges over the 24-month contract term, which means you are protected from price hikes. However, TDSP charges may change during this period, since they are not controlled by Rhythm. The Public Utility Commission of Texas (PUCT) reviews and updates the TDSP charges at regular intervals, typically in March and September.
The following table estimates the monthly power bill you can expect when using this electricity plan, at three consumption levels: 500, 1000 and 2000 kWh.
|Monthly Consumption||Rhythm Charges||Oncor Charges||Total Power Bill|
|500 kWh||$8.95 fixed
$46.72 for energy consumption
$22.04 for transmission and distribution
|1000 kWh||$8.95 fixed
$93.44 for energy consumption
$44.08 for transmission and distribution
|2000 kWh||$8.95 fixed
$186.89 for energy consumption
$88.16 for transmission and distribution
*This same procedure is used to calculate your November bill credits.
Additional Benefits of the Rhythm Two Months Free 24 Plan
When you sign up for the Rhythm Two Months Free plan, 100% of the electricity comes from renewable sources. For comparison, the statewide renewable energy content is 28.9% on average. By using this electricity plan, you are reducing the environmental footprint of your home.
The Two Months Free plan also locks your energy charge for a 24-month period, which means you avoid the price hikes applied in summer months.
- As you can see in the table above, your average electricity price will be in the range of 14-16 cents/kWh (depending on consumption).
- For comparison, many Texan homes were paying over 20 cents/kWh in summer 2022.
Rhythm also offers an incentive if you switch over from an electricity plan provided by another Retail Electric Provider (REP). They will cover up to $150 in early termination fees (ETF) charged under your current contract, but keep in mind this is not a cash payment:
- If your current plan has no ETF, this incentive does not apply.
- If your current plan has an ETF below $150, you don’t get the difference in cash.
- This benefit can only be claimed once per customer.
The Two Months Free Plan has a 24-month term, but Rhythm will give you a 30-day trial period where you can end the contract without penalties. After this period, there is an early termination fee of $20 per each month left in your contract. For example, if you switch to another plan after 18 months, Rhythm charges a $120 penalty for the six months remaining on the contract.
Who Benefits from the Rhythm Two Months Free Plan?
The two free months in this electricity plan can be best described as power bill credits equivalent to your November consumption. This electricity plan is ideal for homes and apartments with a high consumption in November and/or December, but remember you cannot choose the free month. For example, you cannot ask Rhythm to give you a bill credit based on a summer month where you had high air conditioning costs.
- If your home has low electricity consumption during November, the Rhythm Two Months Free 24 plan might not be the best option.
- The free month is much more valuable for a homeowner who normally spends $240 during November, compared with another user who only spends $80.
Note that the Two Months Free 24 Plan does not include solar buyback. If you have solar panels and your current plan offers monthly credits for surplus generation, you will no longer get the benefit. In this case, Rhythm has a separate Solar Buyback Plan for residential consumers.
In general, free electricity plans are recommended when you can take full advantage of the free periods. The Rhythm Two Months Free Plan benefits you in November, and you can also find plans with Free Nights or Free Weekends from other Retail Electric Providers. However, you should always read their Electricity Facts Label (EFL) carefully, to rule out hidden fees.