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Judge grants intervenor status to two SOBE customers

By David Skolnick 5 min read

YOUNGSTOWN - Mahoning County Common Pleas Court Judge Anthony Donofrio granted intervener status in a SOBE Thermal Energy Systems LLC case to two downtown Youngstown buildings, who could have their steam heat shut off as early as Tuesday by the utility company.

Donofrio permitted the request to intervene from West 34 Investors LLC, the owner of Wick Tower, and Erie Terminal Place LLC, which owns Erie Terminal Place, in the court case - Public Utilities Commission of Ohio v. SOBE - "for the limited purpose of receiving notice of all proceedings in this action, and attending status conferences and other relevant hearings."

Donofrio added the two companies, owned by Dominic Marchionda, will receive "all future filings" in the matter. The "intervention does not reopen completed matters, alter existing deadlines or authorize adjudication by this court of rates or other issues committed to PUCO. The court may further define the scope of participation by subsequent order."

Donofrio granted the request over the objection of the PUCO, which wrote in a Monday filing that "it has exclusive jurisdiction over issues related to public utility service, including disputes related to payment for service, the disconnection of service or the abandonment of public utility assets. Therefore, the PUCO is opposed to the proposed intervenors' motion to intervene to the extent that they seek to raise any of these issues in this court."

Michael Moran, the court-appointed attorney for SOBE receiver John C. Collins, wrote in a Sept. 25 response to the Sept. 21 motion to intervene, that he didn't object to the request, but sees no reason why the two businesses were seeking that status.

Moran wrote the motion 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."

Gregg Rossi, attorney for Wick and Erie, said the motion was filed because Marchionda wants to know what Collins is doing, have the opportunity to be heard and perhaps take injunctive relief if necessary.

Collins, Moran and the PUCO have told Marchionda that he needs to file an objection to significant emergency rate increases imposed by the commission with that agency.

Marchionda said he was waiting for a response from Donofrio before proceeding, but has been in contact with the PUCO.

The court case was filed Sept. 19, 2025, by the PUCO against SOBE to allow the commission to have Reg Martin serve as the troubled utility's receiver to avoid it from going out of business and its 23 customers - which make up a majority of downtown - lose steam heat.

Martin was appointed SOBE's receiver on Sept. 26, 2025, by Donofrio at the request of the PUCO. Collins replaced Martin on Feb. 17, also at the PUCO's request.

There have been status conference hearings between the parties in this case at which Collins and Moran update the issues facing SOBE.

The PUCO on June 24 granted significant emergency rate increases for SOBE's 23 customers, including Wick Tower and Erie Terminal.

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%.

Despite the rate increase, Collins and Moran recently said SOBE isn't collecting more money because some customers aren't paying the hikes.

Collins and Moran recently said SOBE could disconnect Wick Tower, Erie Terminal and two other buildings - the former Mahoning National Bank building and the First National Bank Building - as soon as Tuesday for failure to pay rate increases for more than 60 days.

The four were first sent disconnection notices Sept. 6 with the warning that they could be disconnected as soon as Sept. 26, though it was more likely to happen this week.

SOBE gave the four building owners an extension to at least Oct. 13, but Collins and Moran said the disconnection will occur if payments aren't made.

Erie Terminal on Aug. 26 paid $8 - what it was billed for August, September and October 2025 - for its invoice while SOBE states it owes $25,734.97 for two months.

SOBE records show for the past 60 days, Wick owes $10,752.72, 22 Market owes $12,360.75 and FNB owes $7,947.86.

Marchionda said Erie Terminal paid an average monthly payment of $850.62 between Aug. 1, 2025 and July 31, 2026. With the 93% increase, that should go to $1,642.07 monthly, he said. Instead, Erie was charged $12,916.49 when the building didn't even use steam heat.

Marchionda added he is agreeable to an amicable resolution.

If his buildings get disconnected, Marchionda said he will go to court.

The city of Youngstown, which is a SOBE customer, received intervenor status in this case on April 2.

SOBE's financial struggles make the company unable to pay a monthly settlement with Enbridge Gas Co. for past due bills, pay the money owed to Martin for his final months as receiver and has only enough money to pay for three months' rent on boilers needed to provide heat to its downtown customers.

Efforts have been made to get federal and state financial assistance to either help SOBE or its customers. But nothing has been finalized to date.

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