YOUNGSTOWN, Ohio – Emergency rates for SOBE Thermal Energy Systems LLC customers were approved Wednesday by the Public Utilities Commission of Ohio.
The emergency rates were approved as modified by new information received June 22.
The action is now expected to result in as much as a 163% increase for some customers during peak heating season, according to a revised filing.
SOBE reported last month it 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.
SOBE provides steam heat service for 23 customers in Youngstown’s downtown, including City Hall.
The rate increase was recommended by the staff of the PUCO last week.
The revision came after SOBE receiver John Collins identified additional expenses, including a workers’ compensation policy monthly cost of $235 instead of $7 that was accounted for previously and a $4,500 monthly budget for sewer charges, compared with $195 in the staff report. However, the staff asked that amount to be modified to a total of $10,874 for both water and sewer. The revision also accounted for $4,752 in additional payroll expenses over what was previously reported.
The total of revised changes from the PUCO staff’s previous recommendations was $113,149.