KATY, Texas – What started as a local land-use fight in Katy is now turning into a major battle at the state level. After months of homeowner pushback and a city council vote that stopped a proposed 500-megawatt battery energy storage facility in 2024, the developer is now appealing to the Public Utility Commission of Texas, PUC, hoping they can overturn the city’s decision.
The dispute centers on a 24-acre site inside Katy city limits, where Ochoa Energy Storage LLC planned to build one of the largest battery storage systems in Texas, a facility designed to charge and discharge electricity to support the state’s grid.
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But from the beginning, many Katy residents opposed the project.
Before the project was denied, the city held multiple public hearings. Community members showed up to express concerns and said they had fire concerns.
After months of review and public outcry, Katy City Council denied the special use permit Ochoa needed to move forward.
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Katy Mayor William “Dusty” Thiele issued a statement to KPRC 2 News about Ochoa’s state-level appeal, emphasizing the city’s commitment to its residents.
“The City is aware of Ochoa Energy Storage LLC’s appeal to the Public Utilities Commission of Texas. The City’s attorneys have responded to the Appeal of Ochoa Energy Storage LLC from Actions of the City of Katy, Texas, and Application for Declaratory Judgment. The City of Katy is committed to advocating for the best interest of its children and citizens in all matters.”
In filings to the PUC, the City of Katy argues that the denial was lawful, justified, and firmly rooted in community welfare.
Officials say the city:
- Reviewed Ochoa’s plans multiple times
- Tried to work with the developer
- Passed neutral safety ordinances that apply to all battery-storage proposals
- Used its long-standing zoning authority to protect the public
Those safety-focused ordinances include requirements for fire suppression, hazard mitigation, emergency response planning, and setbacks measures city leaders say are necessary and reasonable.
Ochoa has now asked the Public Utility Commission to step in, arguing Katy had no authority to deny the project.
In its appeal, the company claims:
- Katy’s decision interferes with ERCOT’s grid management
- Local zoning shouldn’t limit grid-connected infrastructure
- The city’s concerns are “vague and unfounded”
- Katy is discriminating against the company
- The city’s actions block CenterPoint Energy’s ability to build a needed substation
Ochoa wants the PUC to declare Katy’s ordinances and decision “null and void,” which could force the city to allow the project.
In a statement to KPRC 2 News Ochoa’s parent company, Vesper Energy, said they were working in good faith with the city.
“We have worked diligently and respectfully with the Katy community to meet local needs and provide stability to the Texas energy grid,” said Lander Karath, Director of Community Affairs. “Only after exhausting all reasonable local pathways did we proceed to the PUC, which holds statutory jurisdiction over energy storage assets throughout Texas.”
The Public Utility Commission staff was supposed to make a recommendation this week but is requesting a December 3rd extension. Their decision will determine whether Katy’s rejection stands, or whether the state forces the city to allow the project despite strong local opposition.