Agreement, if Approved, Provides $1.1 Million in Additional Revenue to Support Infrastructure Investment
PHOENIX, Feb. 04, 2025 (GLOBE NEWSWIRE) — Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, has reached a unanimous settlement agreement related to the Global Water – Farmers Water Company, Inc. (GW-Farmers) general rate case application it had filed with the Arizona Corporation Commission (ACC) on June 27, 2024. The settlement agreement was filed with the ACC on January 10, 2025, with a hearing on the agreement scheduled to begin on February 10, 2025.
This is the first rate case submitted for GW-Farmers since Global Water acquired the utility in 2023. The proposed new rates are based on 2023 test-year service connections. If approved, the new rates are expected to provide a revenue increase of approximately $1.1 million on an annualized basis. The increase would be implemented in three stages: 50% on May 1, 2025, 25% on November 1, 2025, and 25% on May 1, 2026.
“We appreciate the collaboration with the Utilities Division Staff and Residential Utility Consumer Office in reaching this unanimous settlement,” commented Global Water chief operating officer, Chris Krygier. “This rate case represents the next step in our plan to improve this utility for customers and the broader Sahuarita community.”
In addition to the rate increase, the agreement proposes a deferral of the recovery of an acquisition premium of approximately $3 million related to Global Water’s acquisition of GW-Farmers. This would enable Global Water to recover that investment in a future rate case as a regulatory asset. The agreement also proposes a system improvement benefits (SIB) mechanism that provides for the timely recovery of the capital costs associated with distribution system improvement projects.
The next step in the process is for a hearing before an Administrative Law Judge, who would then draft a Recommended Opinion and Order for the Commission’s consideration at a future Open Meeting.
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 32 systems which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix. Global Water recycles over 1 billion gallons of water annually with 17.4 billion gallons recycled since 2004.
The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth.
Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks’ Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.
To learn more, visit www.gwresources.com.
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