On July 6, Ochoa Energy Storage LLC, a division of Texas-based Vesper Energy, dropped its legal action against the City of Katy, in a new motion filed with the Texas Public Utilities Commission. The motion is “without prejudice,” meaning that the matter could be revisited at some point in the future.

The Katy Times reached out to officials at Ochoa for comment but did not receive a response by press time for this story.

Ochoa Energy had sought a special use permit in 2024 for a 24-acre site in Katy, where it planned to build a 500-MW battery energy storage facility, to be located near Katy High School. Local opposition to the project was strong, as residents expressed concerns about the project’s safety and its impact on the environment.

Katy’s city council unanimously voted down in October 2024.

Ochoa Energy Storage then filed an appeal with the Public Utility Commission in 2025, asking the PUC to overturn the city’s denial and declare its zoning decisions invalid. The developer argued that Katy lacked authority to block the project and that the denial reached beyond a single site into statewide grid access and reliability. Ochoa also contended that the city’s safety ordinances preempt ERCOT’s actions and that the siting falls within the PUC’s jurisdiction

The City of Katy maintained that the denial was lawful, justified, and rooted in community welfare, pointing to its long-standing zoning authority, neutral safety ordinances (fire suppression, hazard mitigation, emergency response planning, setbacks), and multiple reviews of the plans, according to reporting by KPRC Channel 2 in Houston.

The Electric Reliability Council of Texas (ERCOT) became involved in the case, arguing that the appeal raises questions about its statewide authority and grid reliability. A timetable for hearings and other procedural matters had been established through the PUC. The case was expected to involve months of testimony and to set a precedent for how local governments regulate large-scale energy storage projects in Texas.