Two Downtown Building Owners Want to Intervene in PUCO vs. SOBE case – Business Journal Daily
COLUMBUS, Ohio – The owners of two downtown Youngstown buildings want the Public Utility Commission of Ohio to require SOBE Thermal Energy’s receiver to “provide a complete accounting of the expenses and calculations underlying the rate increases approved last June.
An attorney representing West 34 Investors LLC, which owns the Wick Tower, and Erie Terminal Place LLC, which owns the Erie Terminal building, filed motions Tuesday asking that they be allowed to intervene in the PUCO’s case against SOBE. The two buildings are among the 23 serviced by the downtown utility.
Last June, the PUCO approved a rate increase for SOBE customers of 36% or more for cooling service and by 85% or more for heating service. The PUCO approved the increase to “preserve the financial stability of” SOBE.
Youngstown and the Ohio Consumers’ Counsel asked for a rehearing of the decision. They and attorneys for the PUCO filed their briefs in that case and await a determination.
The motion filed Tuesday by the building owners also asks PUCO for an order “reviewing the inclusion of a disputed $5,500 monthly equipment-installation charge in the expense base used to calculate the emergency rates” among its requests.
Both buildings have “identified substantial questions concerning the accuracy and reasonableness of certain expenses included in the calculation of the emergency rates, as well as the methodology employed by SOBE to allocate operational and natural gas expenses among its customers,” the motions read.
Erie Terminal has been assessed charges reflecting a monthly expense of about $5,500 for equipment installations that was never completed, the motion pertaining to that building says.
“Furthermore, Erie Terminal used no steam during June, July, August and September 2026, yet continued to receive substantial operational and natural gas charges calculated through a proportionate-share methodology that Erie Terminal contends was incorrectly applied,” it continues.
Both buildings’ owners are commercial customers directly subject to the emergency rates and they want to address “specific factual issues concerning incomplete equipment installation, expense allocation and billing calculations that may not otherwise be developed by existing parties,” each motion says. And each building owner’s participation will assist the commission “in determining whether the approved emergency rates and the methodology used to implement them remain reasonable and appropriate.”
SOBE’s difficulties surfaced last summer, when an 800-horsepower mobile boiler was disconnected and repossessed by its owners Sept. 30, 2025, after SOBE management failed to make payments on its lease obligations, leaving customers without heat or hot water.
The court appointed Reg Martin as SOBE’s receiver Sept. 26, 2025. A 650-horsepower boiler was secured to serve customers on the district heating line during the first week of October. Martin, however, acknowledged that the boiler’s capacity was inadequate to serve customers during the winter months. In December, a second 200-horsepower boiler was added, as the team worked to acquire another 800-horsepower boiler for the system.
However, problems with the system resulted in customers losing steam service last winter.
Martin resigned as receiver in February, and the court appointed Atty. John Collins, an Akron attorney, to replace him.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
