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PUCO asks AG to appoint Youngstown Thermal receiver
By Kalea Hall
YOUNGSTOWN
Youngstown Thermal’s dire financial situation has led the Public Utilities Commission of Ohio to formally ask Attorney General Mike DeWine to seek a receiver for the utility.
“We are very hopeful that this receiver will be able to get the utility’s finances in order so that service remains viable for Youngstown Thermal’s customers,” said Asim Z. Haque, chairman of the commission, during a Friday hearing.
The commission doesn’t usually meet on Fridays, but because of the imminent energy crisis Youngstown Thermal customers could face, the commission had to act swiftly.
The PUCO board voted unanimously to accept its staff’s recommendation to ask the attorney general to seek a receiver of the company so that Youngstown Thermal’s finances can be set straight and the service to about 40 Youngstown customers will not be interrupted.
“The next step is to go before the courts to seek the appointment of the receiver,” said Kate Hanson, public information officer for the attorney general’s office. “We are the attorney for the PUCO, so we work [directly] with PUCO and we will be working with them throughout the process.”
Haque noted during the Friday hearing that PUCO is a regulator and does not run utility companies.
Carl Avers, chief executive officer of Youngstown Thermal, explained that he initiated the process with PUCO because he had the fiduciary responsibility to do so. He contends the “short-term” financial hurdle for Youngstown Thermal stems from four major customers not paying their bills. Combined, the customers owe more than $1 million, he said.
Avers hopes the commission will be able to get those customers to pay.
The Vindicator discovered one of the customers with unpaid steam service is the city of Youngstown for the city hall building. A broken meter, which is owned by Youngstown Thermal, led to four-plus years of underbilling. Youngstown Thermal says the city owes $141,570, but the city disagrees with that figure.
Meanwhile, Youngstown Thermal will owe $58,833 by July 10 for its city water bill.
Youngstown Thermal also is behind on other utility bills.
“Combined, Youngstown Thermal owes more than $200,000 in past-due amounts to its natural gas, electric and water service providers,” the finding and order from PUCO released Friday says. “It’s utility debt continues to grow as it pays for only a fraction of its continued use.”
The company has received shut-off or disconnection notices from gas, electric and water providers.
The loss of Youngstown State University, a major customer of Youngstown Thermal, and a Department of Energy project leaving Youngstown Thermal’s plant also hurt the company’s finances.
PUCO determined Youngstown Thermal is insolvent or in danger of becoming insolvent because the company cannot timely or fully pay its utility suppliers, debt service and employee payroll.
“The commission is committed to taking all appropriate steps to maintain reliable utility service to Youngstown Thermal’s customers,” the finding and order says.
A step in that direction is to have a receiver appointed.
Youngstown Mayor John A. McNally called the commission’s action a good step forward for Youngstown Thermal customers.
“I think it’s a step that we have sort of been waiting for,” he said. “We are hopeful through the process we can get things straightened out for Youngstown Thermal and make sure the users aren’t negatively affected.”