CITY OF KATY, Texas (Covering Katy News) — Mayor Dusty Thiele said Tuesday he was very happy for the City of Katy that Ochoa Energy Storage withdrew its application to build a 500-megawatt battery energy storage system facility, known as a BESS, at 27501 Highway Blvd.
“I wish they could have found someplace else to put it, but they just picked the wrong spot to go in next to the schools and next to the neighborhoods,” Thiele said.
The withdrawal ends a lengthy dispute between the city and Ochoa Energy Storage over the proposed battery facility, which drew strong opposition from residents because of its proximity to neighborhoods and Katy High School.
The July 6 withdrawal filing comes after the company and the city were scheduled to have the matter heard and resolved by the Texas Public Utility Commission early next month.
City rejected special use permit application in 2024
Ochoa's proposed facility was designed to support the Texas electric grid and help prevent power outages, such as those that occurred during Winter Storm Uri in February 2021. The company said on its website that the facility would occupy a privately owned site of less than 10 acres next to an electrical substation. The company also said the facility would provide a new source of tax revenue for the city, though it did not provide any estimates.
The project required a special use permit. The Katy City Council, responding to public concerns, rejected the permit application in October 2024. Residents expressed concerns about the proposed facility's location near the Cane Island subdivision and Katy High School.
At at 2024 city council meeting speakers raised concerns about lithium-ion batteries undergoing "thermal runaway" and combusting. Public speakers included a dentist who works with chemicals, a former resident of the neighboring Falcon Point Apartments, a science teacher, and two engineers, all citing dangers of hazardous chemicals, fire, and explosions. One council member had researched other cities with similar systems and found a case in California where a facility burned down, arguing Katy needed better ordinances before allowing such systems.
Ochoa sought relief from Texas Public Utility Commission
Ochoa responded by asking state regulators for a declaratory order against the city. If approved, the order would have allowed the project to move forward despite the city's rejection of the special use permit.
The company confirmed its decision not to move forward with the appeal in a statement late Tuesday and said it values the relationships it built in Katy.
“While we are disappointed in this outcome, we remain committed to developing energy infrastructure that meets Texas's growing energy demand,” the statement said in part. “Battery energy storage is an important part of Texas's energy future, providing reliable power when demand is high and supporting a resilient electric grid. Vesper Energy will continue advancing projects that deliver affordable, dependable energy to communities across Texas and the United States.”