YOUNGSTOWN, Ohio – The Public Utilities Commission of Ohio on Wednesday approved a request to reconsider its decision to approve emergency rates for customers of SOBE Thermal Energy Systems LLC.
The city of Youngstown had claimed the PUCO’s June 24 decision was made without protection of its governmental interests, including public funds, access to uninterrupted municipal utility services, contractual rights and the impact of the emergency rates on taxpayers.
The city and Ohio Consumers’ Counsel both filed a motion for rehearing the matter July 24. In its motion, the OCC stated the emergency rate hike, due to the insolvency of SOBE, has increased consumers’ bills by 36% or more for cooling services and 83% or more for heating services.
The OCC also claimed the increase in rates was decided without the usual protections consumers receive when rates change.
SOBE provides steam heat and chilled water service for 23 downtown customers, including City Hall.
During the PUCO hearing Wednesday, the board agreed to rehear the matter at an expeditious time, but no date was selected.
The receiver managing SOBE’s affairs reported in May that the company could be forced to cease operations as early as late September or early October without an emergency rate increase or alternative funding to pay operational expenses.