NATURE OF THE CASE: YOUNGSTOWN THERMAL CORP (YTC) AND USEPA CONTINUE TO WORK ON DEVELOPING A CD REQUIRING COMPLIANCE BY JAN./1988. THE BACKGROUND OF THE CASE IS AS FOLLOWS: YTC PURCHASED THE NORTH AVENUE STEAM HEATING PLANT FROM OH EDISON ON 10/1/80, ASSUMING OPERATION & OWNERSHIP AT THAT TIME. THE COAL-BURNING PLANT PROVIDES HEATING & PROCESS STEAM TO 117 CUSTOMERS IN DOWNTOWN YOUNGSTOWN. WERE THE PLANT TO CLOSE, OTHER SOURCES OF HEATING & PRO- CESS STEAM WOULD BE AVAILABLE TO THESE CUSTOMERS, AL- THOUGH AT HIGHER RATES. OH EDISON HAD OPERATED AT UNPRO- FITABLE LEVELS FOR YRS. AFTER BEING DENIED PERMISSION TO ABANDON THE PLANT BY THE OH PUBLIC UTILITIES COMMISSION, OH EDISON NEG'D THE SALE TO YTC. FOR A PD OF 2 TO 3 MON- THS BEFORE THE SALE, OH EDISON BURNED OIL RATHER THAN COAL IN THE PLANT'S BOILER UNIT. DURING THIS TIME, THE UNIT WAS IN COMPLIANCE W/PARTICULATE & SULFUR DIOXIDE EMISSION LIMITATIONS. EPA HAS ISSUED A NOV TO OH EDISON ON 5/20/77. OH EDISON HAD NEVER TAKEN ACTION TO CORRECT THE SIGNIFICANT PARTICULATE VIOL'S THAT OCCURED WHEN THE COAL WAS BURNED. YTC THUS PURCHASED THE PLANT W/KNOWLEDGE (1) THAT A VIOL EXISTED & (2) THAT THE PURCHASE OF THE PLANT WOULD NECES- SITATE REMEDIAL ACTION BEING TAKEN BY YTC AS THE NEW OWNER/OPERATOR.