YOUNGSTOWN — As autumn grows closer, some residents and businesses of downtown Youngstown could be at risk of losing their heat and hot water. Under a recent judgment in a civil lawsuit, SOBE Thermal Energy Systems is set to lose the equipment it needs to provide those utilities.

The city is now asking the courts for a stay of execution of judgment in the suit, so they can find a backup plan, even though a judge already rejected a similar motion from the Public Utilities Commission of Ohio.

“The city's top priority in this matter is the safety and well-being of our downtown residents and businesses, who rely on SOBE for heating,” a spokesperson for the city said. “We're actively working on contingencies to ensure that there are no disruptions in service.”

Youngstown’s law department filed a motion Monday asking Judge Anthony Donofrio to delay Wabash Power Equipment Company’s repossession of equipment from the SOBE plant on North Avenue for 30 days. The city says without the equipment, SOBE cannot provide heat, cooling or hot water to 90 residential units and 27 commercial buildings downtown. 

"The City does not oppose Wabash's ultimate effort to be made whole," the motion reads. "Repossession of the mobile steam unit at this time, however, creates an untenable circumstance for residents and businesses in downtown Youngstown. Customers' heating, cooling, and hot water would be shut off with no warning and no timeline for restarting services."

Senior Assistant Law Director Jason Small declined to comment on camera, citing ongoing negotiations between Youngstown, SOBE and Wabash, but he told 21 News an update could come as soon as the start of next week. 

It’s a bit of an unlikely alliance, considering Youngstown’s own ongoing legal battle against SOBE. Youngstown officials are appealing a decision by the Ohio Environmental Protection Agency that permitted SOBE to operate a unit converting old tires into synthetic gas in a process known as pyrolysis. The case is currently before the Environmental Review Appeals Commission.

Wabash sued SOBE in the Mahoning County Common Pleas Court in May, seeking to repossess the equipment it was leasing to the thermal energy company after it said SOBE “failed to pay all amounts” due under the parties’ lease agreement. This followed a $383,213.82 judgment in favor of Wabash from a federal judge in Illinois, after which Wabash said SOBE refused to give back the equipment. 

Donofrio issued a default judgment in the case on Aug. 21, ordering SOBE to “cease all use and operations … and completely and permanently shut down, turn off, and disconnect” the equipment within 24 hours, to prepare it for return to Wabash. 

According to a court filing, Wabash informed SOBE on Aug. 26 that it intended to repossess the equipment on Sept. 3. Days later, on Aug. 28, the Public Utilities Commission of Ohio (PUCO) filed an emergency motion to reopen the case and stay the execution of judgement for at least 30 days “to develop and facilitate a plan to ensure that service continues for SOBE's customers.”

PUCO told the court it didn’t intend to “deprive Wabash of its Equipment without payment,” but wanted time to “work with SOBE to create a plan that will ensure service is maintained for customers.” 

In response, Wabash filed a motion stating PUCO has “no legal basis” to seek relief on behalf of SOBE, and cast doubt on its characterization of the situation as an “emergency,” saying it “unreasonably delayed” taking action until after judgement had been granted. 

Wabash later told the court in a memo it had agreed with SOBE to “voluntarily defer recovery of its Equipment until at least September 16, 2025,” 27 days after Donofrio’s Aug. 21 judgment, which it said made PUCO’s request “moot.”

Donofrio rejected PUCO’s motion Monday, Sept. 8, saying the case is closed and the court no longer has jurisdiction over it. The same day, the city of Youngstown filed its own motion to intervene.