Rep. McNally Questions PUCO Obligations in SOBE Thermal Bankruptcy and Receivership

COLUMBUS - State Rep. Lauren McNally (D-Youngstown) today sent a letter to the Public Utilities Commission of Ohio (PUCO) demanding to know why years of red flags from SOBE Thermal LLC didn’t result in more proactive oversight of the utility. Through the Ohio Revised Code, PUCO has broad authority to regulate utilities. Its “general supervision,” requirement to be “[kept] informed as to their general condition and capitalization,” and their “power to inspect,” (R.C. 4905.06) could have and should have triggered a review of SOBE Thermal when their filing showed a loss in 2024. 

“This is the second time in eight years that customers have had to deal with this issue. In 2017, Youngstown Thermal LLC was placed under receivership, by PUCO, due to financial struggles and a diminished customer base. It sat in receivership for two years when SOBE was allowed to acquire it, certain promises were made. Those never came to fruition, and we are still stuck in a cycle of mismanagement,” said Rep. McNally.

Last month, SOBE Thermal’s operations were interrupted due to repossession of vital equipment. These buildings were left without heat and hot water. The public utility is now in receivership and state and local entities are working together to make a viable long-term solution.  

The letter sent to the commissioners can be viewed here.