SOBE’s second boiler installed

Local News SOBE’s second boiler installed Fears grow over loss of heat downtown in Jan. By DAVID SKOLNICK November 10, 2026 6 min read Trending YOUNGSTOWN - SOBE Thermal Energy Systems LLC's second boiler is being installed while the future of the financially struggling company that provides steam heat for most of downtown remains uncertain with money running out. A second 800-horsepower boiler arrived last week and is being installed, said John C. Collins, SOBE's receiver since Feb. 17. Collins said Monday: "It will be up and running some time this week. It's here, and they have schematics and drawings. They're working on it as we speak." In order to save money, SOBE returned two rented boilers, one was 650-horsepower and the other was 250-horsepower, in late July-early August to Power Mechanical Inc., the Newport News, Virginia, company that leases the boilers. By keeping an 800-horsepower boiler, it reduced its monthly payments for the equipment from $58,000 to $28,400. But SOBE needs a second 800-horsepower boiler as a backup in case the other one goes down, Collins said. During its trek from Virginia last week, the boiler was held up at the state line for a day because the state scales were down, Collins said. It arrived Nov. 4 and was still being installed as of Monday. The backup boiler will double the rental cost for SOBE to $56,800. SOBE has about $120,000 left from a $750,000 payment given to it by Enbridge Gas Co. as part of the company's $1 million settlement with the Public Utilities Commission of Ohio over the Realty Tower explosion investigation. SOBE uses that money to lease the boilers. Collins said that money will be depleted by January - leaving its customers without heat during what is typically the coldest time of the year. "We've got $120,000, which is two months of boiler payments," he said. "We're not going to have the money to provide customers with heat through the winter. In January, we won't have money to pay the boilers and if we do, we won't have the money to pay Enbridge." Collins was referring to not only Enbridge's monthly gas bills, but money for a $724,324.82 settlement it negotiated in July with the company for past due bills of $2,226,662.62. The agreement called for SOBE to pay $40,240.25 a month, starting in August, for 18 months on top of its regular gas bill. To date, SOBE hasn't made a single payment to Enbridge for the settlement amount. Michael Moran, SOBE's legal counsel, said Monday about Enbridge: "They've been less than aggressive on the arrearage because we've been current with our bills." Collins added that Enbridge "realizes if they cut off service, they won't get their money." While there's been talk of help from the state and/or the federal government - and pleas from Mayor Derrick McDowell for assistance - nothing has materialized, Collins and Moran said. Collins said: "We need to hear from someone that the money is coming. We're hopeful, but we're running out of time. We can't pay our bills without help, and we desperately need help. A lot of people will be affected by this." Moran said: "They don't care to keep us informed. They care about the issue, but they won't keep us informed." SOBE's problems came to a head when it was put into court-ordered receivership Sept. 26, 2025, after the PUCO determined the utility company could no longer provide services to its customers. A rented 800-horsepower boiler was repossessed Sept. 30, 2025, from SOBE because the company defaulted on paying for the equipment that provided heat to its then 23 downtown customers. That resulted in SOBE abandoning the city with Reg Martin appointed receiver at the request of the PUCO. But with SOBE customers complaining about service failing a number of times during January and February, the PUCO had Martin removed as receiver with Collins replacing him Feb. 17. The emergency rate hikes authorized by the PUCO called for 13 of the SOBE's then 23 customers, to pay 93% increases for the non-heating season between May and October. Two others were to pay 92% more with one at 91% and two at 36%. The five other customers are paying between 64% and 80% more. That same PUCO decision called for the rate to increase by another 162% for 14 of SOBE's customers with one charged 163% more between November and April and two billed 85% more. The six others were to be charged increases between 123% and 159%. But Moran and Collins said that additional rate increase, peaking at 163%, is not necessarily correct and is too high. However, in recent weeks, SOBE lost three customers and had to disconnect another - 22 Market Street Ohio LLC, which is developing the former Mahoning National Bank building - for being delinquent with payments. The three customers who left the system are 6 W. Federal St., the former Chase Tower owned by Ashiana Homes Inc.; the planned Youngstown Innovation Hub for Aerospace and Defense at 107 Vindicator Square, the former Youngstown Vindicator building; and the Apollo Event Center, 117 S. Champion St. Also, rate hikes approved June 24 by the PUCO, which took effect six days later, haven't helped SOBE because some customers aren't paying them and other buildings are no longer on the system. Moran said: "Our operating expenses need to be covered. The costs no longer paid by former customers have to be spread out to the remaining customers. It's a bad situation." There's an ongoing dispute with West 34 Investors LLC, which owns Wick Tower, and Erie Terminal Place LLC, which owns Erie Terminal Place, over late payment issues. Dominic Marchionda runs both companies and said his buildings are being charged far too much by SOBE - more than the rate increases approved by the PUCO. SOBE sent disconnection notices to the two companies, but PUCO Administrative Law Judge Jacky Werman St. John ruled Oct. 15 that the utility couldn't terminate service to the buildings "during the pendency of the complaint due to the nonpayment of the amount disputed related to the emergency rates approved by the commission." Both buildings have 40 residential units. SOBE had an interim settlement discussion with the two buildings to have them pay about $4,400 each a month before Werman St. John's decision. Also, Marchionda never signed a preliminary settlement agreement. Moran said West 34 will continue to pay $4,400 a month while this works its way through the PUCO, but he didn't know what Erie Terminal would pay. In addition to the two Marchionda buildings, some of SOBE's largest remaining customers include city hall and the attached police building, Domestic Linen, the Central YMCA of Youngstown, the Youngstown Board of Education, First National Bank (which was disconnected for a short time when it didn't pay its bill), YBI (formerly the Youngstown Business Incubator) and the Ohio One building.