Rhythm enters Texas energy market
Electricity provider confident of inroads
Although there are more than 70 retail electricity providers in Texas, Rhythm CEO and founder Predrag “P.J.” Popovi says he’s confident that Houston-based Rhythm can stand out.
Rhythm, which began selling power online Monday, enters not only a crowded field, but one that is dominated by two of the nation’s largest energy companies, Houston-based NRG and Irving-based Vistra. Both trace their roots to the turn of the last century.
“Only two companies serve 85 percent of the Texas market. Those companies are NRG and Vistra, and they were created 100 plus years ago,” Popovi said. “They have dominated this industry, pretty much before the dawn of deregulation. The world has transformed, but retail energy really hasn't in the past couple of decades.”
Popovi, who moved to Houston from Serbia 20 years ago, is the the former vice president and general manager of the U.S. market of Direct Energy, which NRG bought in a $3.6 billion deal that closed last month.
He founded Rhythm with Gordon Avery, head of digital marketing, and Matthew Tolliver, who oversees product and business development. Privately held Rhythm, Popovi said, seeks deliver innovation and a dedication to renewables to the Houston retail power market.
Rhythm offers 100 percent wind-generated power with plans to expand to solar this year, Popovi said. He said he hopes Rhythm can help expand the state grid’s use of renewable sources beyond the current estimated 25 percent.
The company, which hopes to employ about 60 workers in Texas by the end of the year, has invested heavily in technology, Popovi said, “building an experience for the digital age like signing up for service in 30 sec
onds or less on our website.” he said.
“We’ve set up alerts to analyze your usage in a way you can understand and take action if something is off. And we've reimagined the electricity bill to make it very easy to read and understand,” he added.
Popovi said he hopes to lure customers with contracts that allow them to leave within 90 days without penalty and renewal rates that are equal to those paid by new customers. Typically, renewing customers pay more than they do when they first sign up with a retail power provider.
He also promised to reduce the number of hidden fees charged to customers.
“Some companies, for example, have approximately 18 fees added to their customer bills,” Popovi said. “We know, because we counted those.”