YOUNGSTOWN The Public Utilities Commission of Ohio (PUCO) has issued an order on Thursday asking Ohio Attorney General Dave Yost to seek the appointment of a receiver for SOBE Thermal Energy Solutions.

The PUCO said it's a necessary move to protect 27 downtown buildings that rely on SOBE for heating and cooling services.

"What this would do, if the court agrees, would find someone essentially to take over the day-to-day operations of the utility," Matt Schilling with the PUCO said, "and ensure that they are financially healthy enough to continue to provide the adequate, safe and reliable service that the customers in downtown Youngstown depend on."

This comes after PUCO staff filed a letter seeking that the Commission open an investigation following reports that equipment essential to SOBE's operations was due to be repossessed for nonpayment.

The Mahoning County Court of Common Pleas recently granted Wabash Power Equipment Co. the right to the immediate possession of the Containerized Mobile Steam Plant SOBE uses to provide heating and cooling services to its customers in downtown Youngstown.

The City of Youngstown and Wabash reached a temporary agreement earlier this week to keep the mobile plant on site at SOBE until September 30. A spokesperson for the city said they hope to come to a long-term solution as quickly as possible. 

The order says the Commission is committed to taking the appropriate steps to maintain services for SOBE's customers.

"We further find that the likely seizure of SOBE's boiler and insurmountable indebtedness jeopardize SOBE's ability to continue to provide service to its customers. In addition, based on these issues, we find that SOBE is in immediate danger of insolvency.

The move also raises new uncertainty about pyrolysis, the company's plan to superheat shredded tires into synthetic gas.

SOBE's CEO Dave Ferro is pushing back.

Ferro said SOBE has not filed for bankruptcy and doesn't plan to and will appeal the PUCO's decision. Despite Wabash ordering SOBE to return equipment, Ferro said the equipment isn't going anywhere.

"The PUCO's chief concern again, is that the utility is able to provide safe and reliable and adequate service to its customers," Schilling said, "It's simply just kind of unknown what the implications of the utility's long-term plans will be."

The Ohio EPA said SOBE's pyrolysis permit remains in effect unless SOBE withdraws it or if court documents require it to be withdrawn. 

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