A zoning request for a special use permit for a battery energy storage system (BESS), to be located at 27051 Highway Blvd, in Katy, was presented by officials of Ochoa Energy and its parent company, Vesper Energy, at Katy’s meeting of city council on September 23. The 24-acre facility would house up to 200 modules similar to shipping containers holding lithium-ion batteries, which company officials said would store excess energy and then release it back onto ERCOT’s power grid when demand is high. When completed, the 500 MW system will provide enough to power about 60,000 homes for two hours, according to the company’s presentation.

The purpose of the project is to enhance electric grid reliability and to help reduce the cost of electricity for consumers, according to the presentation. The enterprise is also projected to bring in $3,784,187.00 tax revenue to the City of Katy and over $11,221,834.00 in tax revenue to Katy ISD in its first ten years of operation. If approved, the project would be commissioned in 2026.

Vesper officials said they chose the Katy site because it is strategically located directly adjacent to an existing major transmission line corridor serving the Katy area, is on undeveloped land already zoned for industrial use, and that improvement and grading needs make the property undesirable for manufacturing or other industrial-type businesses.

Vesper Energy is an experienced developer, owner, and operator of utility -scale renewable energy and energy storage assets across the US with experience in solar projects. The Katy project would be their first BESS project, company officials said. The facility would release no pollution during normal operation and the facility would be quiet and inconspicuous, they said.

Safety measures for the project include a separate cooling system for each container and 24/7/365 monitoring of batteries, which can be taken offline remotely. Batteries are compartmentalized and tested to prevent a “thermal runaway” event in which a battery may overheat, causing a chain reaction of overheating leading to a possible fire.

Six speakers, including Katy Area Economic Development Council President Angie Thomason, spoke in favor of the project during public comments.

Following the company’s presentation, Councilmember Rory Robertson moved to hear recommendations from city staff on the project. Katy Fire Chief Kenneth Parker said that there has not been a lot of regulation of the battery storage industry, although it has gotten better. He said that standard practice for a fire at such a facility is to let it burn out, reducing danger to firefighters and preventing chemical run-off into the watershed if water is used to extinguish the fire. The fire department has given its approval to the project, Parker said.

Council members Dan Smith and Janet Corte raised concerns about the proposed project, which included its proximity to an existing gas pipeline. Additionally, the facility is close to “a lot of things we care deeply about” within a one-mile radius of the facility, including schools and

neighborhoods. Smith said. After lengthy questioning of the presenters, Corte summarized her concerns as: bringing a new unproven unregulated industry to Katy, Vesper’s lack of experience in battery storage, fire concerns, the location near schools and neighborhoods, and the origin of the lithium used and its effect on the environment. Corte then “tagged” the agenda item, an action that will automatically move the discussion to the council’s meeting agenda for October 14.

The council, in roll call votes, also unanimously approved the city’s budget for the 2024-2025 fiscal year. The new budget provides for changes to the personnel budget, including amendments to classifications for fire and police departments and changes to the salary grades. Council member Dan Smith and Mayor Pro Tem Chris Harris said that the changes would make the city more competitive with other area municipalities. The new budget also includes a hotel occupancy fund budget.

Also in a roll call vote, council unanimously approved the proposed 2024 tax rate of $0.425, of which $0.3708 will fund maintenance and operations and $0.0542 will fund debt service. Harris said the new rate was lower than past years.

In other action, council approved ordinances appointing Justin Pruitt of Olson & Olson, LLP as city attorney and David Kasper of ARKK Engineers, LLC as city engineer for the City of Katy. City Secretary Becky McGrew was to administer the oaths of office to each appointee following the council meeting.

The next meeting of the city council will be held October 14 at 6:30 p.m. at City Hall, 901 Avenue C in Katy.