YOUNGSTOWN - Earlier in February, 21 News reported on the City of Youngstown filing a motion to intervene in an ongoing issue involving SOBE Thermal Energy Solutions supplying steam heat to several buildings in downtown Youngstown.

This came after several prominent downtown buildings, like OH WOW!, West 34 and the YMCA, were without heat for several days due to a ruptured water line disabling SOBE's boilers.

Now, Ohio Assistant Attorney General Julian Johnson filed a response on behalf of the Public Utilities Commission of Ohio (PUCO) supporting the city's request to intervene.

According to a document filed in the Mahoning County Common Pleas Court on Monday, February 23, PUCO does not oppose the city's intervention in this matter.

"The PUCO acknowledges the city's valid interests, which align with those of the PUCO. The PUCO has appreciated the city's strong leadership and consistent advocacy by SOBE's customers, and it looks to continue to engage collaboratively with the city to achieve stabilization of the utility," the document reads.

However, Johnson has voiced some disagreements with some statements and requests from the city's original filing from February 9.

Johnson asks that if the court does grant the city's request for intervention, the court should treat the city as an intervenor plaintiff and not allow the city to directly be involved in the situation because the two parties' goals are so closely aligned.

"The city should not be in the procedural position to have to defend against PUCO's complaint. Therefore, the proposed answer should be rejected, and the city should be instructed to submit an intervenor complaint," the document reads.

The filing goes on to state that the court granting this request would set a precedent, upon which other creditors may seek intervention as well, which would alter the nature of the litigation and undermine its objective.

Additionally, Johnson voiced disagreements with the city's proposed breach of contract claim against SOBE to pay for water usage, stating that it is a separate issue not directly related to the matter at hand.

"This case relates to SOBE's duty to furnish necessary and adequate utility service to customers ... and the need for a receiver to ensure continued service considering SOBE's financial difficulties. SOBE's water usage and alleged failure to pay for this usage is a purely contractual dispute between SOBE and the city unrelated to this case," the filing reads.

Finally, Johnson asked that the court not order the receiver to escrow funds until it is proven that SOBE's boiler is consistently operational, arguing that this request is inconsistent with the court's order appointing the receiver and approving the receiver's fees.

"There is no basis for limiting the incoming receiver's ability to collect fees and costs. Especially when the city recognizes that this receivership is 'profoundly more difficult than the typical receivership,'" the document reads.

Johnson goes on to state that the city granting this request would be a "waste of resources" for both the receiver and the Clerk of Courts.

"If the city's request is granted, it would cripple the new receiver in his duty to fix the issues that are preventing SOBE from operating successfully at optimal capacity without further interruption in providing service to its downtown customers," the document reads.

You can read much more about this matter in our related coverage below.

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