‹ Harris County Municipal Utility District No. 490 · All districts' issues
concern
Agreement
Confirm the agenda item under which the 24-month TXU contract was approved, and whether USource is paid a commission built into the rate.
Gov't Code §551.041; Good practice: disclose broker compensation.
The board action behind it
2025-12-09: Approved a 24-month Contract for Supply of Electricity with TXU Energy at a rate of $0.08614 for Lift Station No. 4, Lift Station No. 1 and street lighting, subject to SPH review
What else happened at that meeting
At a special meeting, the Board approved a 24-month electricity supply contract with TXU Energy at a rate of $0.08614, as presented by its electricity consultant USource. It authorized a $35,000 payment to BGE for engineering work on a cancelled 2025 road bond issue, to be paid from surplus road bond funds and credited against BGE's preparation of the next road bond summary of costs. The Board amended its Rate Order to raise the sanitary sewer rate by a total of $1.33 for garbage and recycling service and to add a $120.00 monthly fee for rental meters. It approved the engineer's report, including concurrence in the award of the Prairieland Village, Section 51 Amenity construction contract to Allgreen Associates, and deferred a decision on the operations services proposals until after Harris County MUD 418 meets in January. The Board asked the operator to defer disconnections for non-payment caused by delays in the Starnik payment-system transition and asked Touchstone to send residents account set-up instructions.The law and guidance in force on 2025-12-09
| Notice of the subject of each action Gov't Code §551.041
§551.041: Same text in force then and now |
Question | The December 9, 2025 posted agenda on hand lists no item for an electricity contract; it was taken up at the start of the meeting after the broker's presentation (p.1). |
| Competitive bidding Water Code §49.278 (exemptions; may apply)
§49.278: Same text in force then and now |
Doesn't apply | Electricity purchases may fall within a §49.278 exemption; one broker pricing package is recorded (Exhibit A). |
Who's involved
TXU Energy (retail electric provider)
USource (energy broker)
Schwartz, Page & Harding, L.L.P. (general counsel (also counsel to MUD 418, MUD 419, MUD 489 and the Bridgeland Water Agency))
Cost to the district
Usage-based; covers Lift Stations 1 and 4 and street lighting (FY2027 streetlight utilities budget $53,000). · 24 months at $0.08614 per kWhWhy the board approved it
Recorded: “USource (Bear Oakley) presented renewal pricing; the President was authorized to sign via DocuSign subject to SPH review (p.1).”
A pricing package was reviewed, but how the broker is paid and whether other suppliers were priced is not recorded.