Katy’s long-running fight over a proposed 500-megawatt battery storage site has jumped from City Hall to state regulators in Austin, and no one expects a quick resolution. The Public Utility Commission of Texas has put off a final decision while it works out a procedural schedule, and the Electric Reliability Council of Texas has asked to intervene. What began as neighborhood pushback and a unanimous city council denial is now set up for months of testimony at the PUC.
PUC timetable hits pause
The PUC plans to take up a proposed procedural schedule at its open meeting on Friday, with any new steps posted in the agency’s public docket. According to the Public Utility Commission calendar, commissioners meet publicly next week to set timelines for contested cases. Until a schedule is formally adopted, the Katy project is effectively on hold.
How the appeal reached Austin
Ochoa Energy Storage LLC filed an appeal asking the PUC to overturn Katy’s denial and issue a declaratory order. In the commission’s public docket, the case appears as Appeal of Ochoa Energy Storage LLC from actions of the City of Katy” (Control No. 58859), according to the PUC’s Interchange system. That filing triggered formal responses from the city and will control who is allowed to intervene and present testimony.
ERCOT steps into the fight
The Electric Reliability Council of Texas has moved to intervene, arguing that Katy’s denial reaches beyond a single project and into statewide grid access and reliability. As reported by Click2Houston, ERCOT wrote that the appeal “raises questions about the extent of ERCOT’s authority” and cited PURA § 39.151. ERCOT is asking to be admitted as a full party so it can defend what it describes as network-wide interests.
Developer: this is about grid reliability
Ochoa, developed by Vesper Energy, is pitched as a reliability project that would sit beside an existing substation and store electricity to help prevent shortages during peak demand. The company’s website describes the Ochoa project as up to 500 megawatts on private land “directly next to an electrical substation” in Katy and highlights potential tax and reliability benefits. The developer is asking the PUC to declare the city’s ordinances and its permit denial null so the project can move ahead.
Neighbors and city officials pushed back
Dozens of Katy residents spoke against the plan at multiple hearings, and the City Council unanimously rejected the special-use permit over safety and siting concerns. Neighbors raised alarms about fire risk and proximity, including how close the site would be to Katy High School, according to Covering Katy. City staff have been drafting potential battery rules that would address setbacks, fire suppression, and emergency-planning requirements, per reporting by Community Impact.
What the procedural schedule says
Filings in the case include a proposed timetable that starts with the developer’s direct testimony on March 6, 2026, followed by Katy’s testimony on April 13, ERCOT and PUC staff testimony on May 1, and a hearing on the merits set for July 15 and 16, 2026. Click2Houston reported those dates and noted that the PUC press office said the schedule is still under consideration. If that timetable is adopted, a final ruling would land in the second half of next year.
Legal stakes and likely outcomes
New rule-making at the PUC could effectively override local zoning, a move that would set a significant precedent for future battery projects across Texas. Energy-Storage.News has highlighted the Katy appeal as a test case for how far local governments can go in limiting grid-connected infrastructure and how often the PUC will assert state authority, according to industry reporting. Whatever the outcome, the decision is expected to influence dozens of pending storage applications in the ERCOT queue.
What’s next for Katy
For now, the project remains stalled while the commission and would-be intervenors sort out procedure, with Friday’s open meeting as the next visible milestone. Residents can track filings through the PUC docket for Control No. 58859 and check meeting dates on the PUC calendar. Officials on all sides say they expect the fight to play out through at least mid-2026.
