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YOUNGSTOWN - The attorney for SOBE Thermal Energy Systems LLC's receiver doesn't object to requests by two customers - who were sent disconnection notices - to intervene in a Mahoning County Common Pleas Court case, but sees no reason why they're seeking that status.
Michael Moran, the court-appointed attorney for SOBE receiver John C. Collins, wrote in a Tuesday response that the request by West 34 Investors LLC, the owner of Wick Tower, and Erie Terminal Place LLC, which owns Erie Terminal Place, to intervene "is extremely unclear. Beyond desiring to be parties to the proceeding and to have their counsel served with future pleadings and orders, there is no apparent purpose to the proposed claims to be filed."
Moran added that he "believes the proposed relief sought is relief that this court cannot grant."
The case - Public Utilities Commission of Ohio v. SOBE - was filed Sept. 19, 2025, in common pleas court to allow the PUCO to appoint Reg Martin as SOBE's receiver to avoid the company from going out of business after David Ferro, the company's CEO, abandoned the Youngstown facility because of significant financial issues.
Martin was appointed SOBE's receiver on Sept. 26, 2025, by Judge Anthony Donofrio at the request of the PUCO. Collins replaced Martin on Feb. 17, also at the PUCO's request.
West 34 and Erie Terminal - which are owned by companies run by Dominic Marchionda - filed a Sept. 21 motion with Donofrio to intervene in the case limited to "matters that directly affect continued steam service, customer payments, disposition or abandonment of system assets, use of operating revenue and other relief within this court's receivership jurisdiction."
Moran wrote in his Tuesday response that those "matters are exclusively preserved for the Public Utilities Common of Ohio to determine."
Gregg Rossi, attorney for both companies, told The Vindicator on Sept. 22: "The purpose of the motion to intervene was to get notice of what the receiver is doing. If we get intervenor status, it gives us a better opportunity to know what's going on and have the opportunity to be heard and perhaps take injunctive relief if necessary."
The PUCO on June 24 granted significant emergency rate increases for SOBE's 23 customers, which make up a majority of downtown Youngstown and include Wick Tower and Erie Terminal. The rate increase took effect June 30.
For 13 of the SOBE's 23 customers, the emergency rate increase for the non-heating season between May and October, was 93% with two at 92%, one at 91% and two at 36%. The five other customers are paying between 64% and 80% more.
Between November and April, the rate will increase by another 162% for 14 of SOBE's 23 customers. One will pay 163% more during those six months with two paying 85% more. The six others will pay increases between 123% and 159%.
SOBE sent disconnection notices on Sept. 9 to Wick, Erie as well as 22 Market Street Ohio LLC, which is developing the former Mahoning National Bank building, and FNB Youngstown LLC, which owns the First National Bank Building, also known as Central Tower.
Disconnections could occur as soon as next week, Moran recently said.
The four properties haven't paid their SOBE bills in the past 60 days, with some being longer than that, Collins and Moran said.
Moran wrote in the Tuesday filing that Erie and Wick, like every SOBE customer, were notified of the rate increase "in order to preserve the financial stability of this business."
But both are delinquent.
Erie on Aug. 26 paid $8 for its invoice while Moran wrote it owes $25,734.97 for two months.
SOBE records show Wick owes $10,752.72 for the past 60 days.
Moran wrote Wick and Erie have been advised a number of times that the "appropriate procedure for addressing a payment dispute or a dispute regarding service" is the PUCO and nothing by either entity has been filed with the commission.
Moran wrote: "Their continued failure to pay the rate established for the services provided to them frustrates the efforts to continue operations of the steam system. The receivership is left with the impression that these two proposed interveners wish to have services continued to be provided to them but not pay the amounts necessary for such operations to continue."
Marchionda, whose companies own Wick and Erie, said he is willing to pay the increases, but his buildings were billed for far more than 93%.
Marchionda said Erie Terminal was paying about $750 to $800 a month before the emergency rate increase, and is now being charged nearly $13,000 a month - and it's during a time when that building isn't using any steam heat.
SOBE's financial situation is so perilous that Collins said Sept. 22: "We're going to be out of business in 90 days at the most unless someone comes in and helps us. We need operating capital to keep us going through the spring and summer of 2027 and nobody has done that. There are things in the works and there are possibilities, but nothing is concrete."
There appears to be an effort to help bailout SOBE through federal and state funding.
Collins declined to comment on the issue while Dan Tierney, Gov. Mike DeWine's spokesman, said, "We continue to have positive discussion, but there's no final resolution."
There is the possibility that the State Controlling Board could act on a proposal to provide financial help to SOBE at its Oct. 19 meeting.
Monday was the regular deadline to submit requests to the Ohio Office of Budget and Management to get on the Oct. 19 agenda. There was nothing submitted as of Tuesday to the Controlling Board.
But an OBM official said: "There is no set time deadline for agencies to submit their requests to the Controlling Board. Additionally, it is at the discretion of the Controlling Board president as to whether late submissions will be accepted."
The Oct. 19 agenda is scheduled to be published Oct. 9.