Bright future in the offing for Youngstown Thermal

Customers of Youngstown Thermal can rest assured that the state of Ohio will not let the public utility go out of business. Gov. John R. Kasich’s office is well aware that any disruption in service to the 40 users in Youngstown’s central business district would put jobs at risk.

An inquiry by the editor of The Vindicator’s Editorial Page about the availability of state grants to help stabilize the company’s finances prompted a member of the governor’s staff to contact several state agencies. Officials were forthcoming with information and guidance.

There also was a call to The Vindicator from the chairman of the Public Utilities Commission of Ohio, Asim Z. Haque, who reiterated the commission’s commitment to ensure that Youngstown Thermal remains a viable company.

Indeed, the PUCO acted promptly after YT’s Chief Executive Officer Carl Avers warned of an “energy crisis” in downtown Youngstown if the commission did not intervene.

The PUCO got the ball rolling on the appointment by the court of a receiver for the utility company.

On Aug. 1, Mahoning County Common Pleas Court Judge R. Scott Krichbaum selected Reg Martin of Martin Management Services in Columbus to take control of Youngstown Thermal.

The PUCO also has approved surcharges for YT’s customers so the company can meet payroll expenses and pay its utility bills.

Here’s what commission Chairman Haque had to say about Martin:

“We are happy to report that a receiver with deep experience, a receiver who has handled more than a few hundred receiverships, was recently appointed the receiver for Youngstown Thermal. However … while it is an important step, the commission with the help of the community must make every effort to ensure that continuous service is delivered to Youngstown Thermal’s customers.”

Meeting with customers

Martin, who recently hosted a meeting of the customers to elicit their opinions about Youngstown Thermal’s service, is forming an advisory committee to assist him in developing a plan of action.

Martin is to be commended for reaching out to stakeholders at a time when reassurance about the company’s future is clearly needed.

Indeed, out-of-town firms that provide individual heating and cooling systems for work places have been in contact with some YT customers. The promise of cost savings may be an effective sales pitch, but caution is strongly advised. There are long-term costs associated with individual energy systems that are not obvious and not always discussed.

Not every customer on Youngstown Thermal’s steam-generated heating and cooling grid could afford to install its own system, which is why the Youngstown utility company must survive.

However, that will only happen if the 40 customers make a commitment to remain with Youngstown Thermal.

Indeed, any customer who chooses to leave the system after the strong support shown by the PUCO and the state of Ohio should be viewed as bad corporate citizens and ridiculed as such. This is especially true of the larger customers.

As we said at the outset, state government will not let the company fail because the Youngstown central business district deserves a dependable source of energy to remain economically viable.

There’s another compelling reason to support the continued existence of Youngstown Thermal and assist Martin in stabilizing the company’s finances. Despite its recent problems, Youngstown Thermal remains an attractive investment for energy companies that provide heating and cooling services.

We would not be surprised if there are suitors waiting in the wings for the right time to make an ownership bid.

Martin is working hard as the receiver to put the company on a firm financial footing so a prospective buyer can feel confident that there will be a return on investment.

His decision to form an advisory committee is a clear indication that he intends to consider the needs of the customers as he charts Youngstown Thermal’s future.

Martin is worthy of our trust.