Global Water Resources Granted Rate Increase for GW-Farmers Utility

Rhea-AI Summary

Global Water Resources (NASDAQ: GWRS) has secured approval from the Arizona Commission for new water rates at its GW-Farmers Water Company utility in Pima County, Arizona. The rate increase is expected to generate approximately $1.1 million in additional annual revenue based on 2023 test-year connections.

The implementation will occur in three phases:

• 50% on May 1, 2025
• 25% on November 1, 2025
• 25% on May 1, 2026

The ACC also approved deferring the recovery of a $3 million acquisition premium related to the GW-Farmers acquisition for a future rate case. GW-Farmers serves 3,494 active water connections across 21.0 square miles in the Town of Sahuarita and surrounding areas, representing 5.4% of Global Water's total active connections.

Positive

• Secured approval for rate increase generating $1.1 million additional annual revenue
• Phased implementation approach reduces immediate customer impact
• ACC approved $3 million acquisition premium recovery deferral

Negative

• Rate increase implementation spread over one year may delay full revenue realization
• GW-Farmers represents only 5.4% of total connections, limiting overall impact

New Rates Expected to Generate Approximately $1.1 Million Increase in Annual Revenue

PHOENIX, April 23, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, has received approval from the Arizona Corporation Commission (ACC) to establish new water rates for its Global Water - Farmers Water Company, Inc. (GW-Farmers) utility located in Pima County, Arizona.

The approved new rates are expected to result in an approximately $1.1 million increase in annual revenue based on 2023 test-year service connections.

GW-Farmers will implement the rate increase in three stages: 50% on May 1, 2025, 25% on November 1, 2025, and the remaining 25% on May 1, 2026.

In addition to the rate increase, the ACC approved a deferral of the recovery of an acquisition premium of approximately $3 million related to the company’s acquisition of GW-Farmers, which will be recovered in a future rate case.

“The additional revenue generated by the new rates will support our efforts to improve GW-Farmers for the benefit of its customers and the broader Sahuarita community,” said Global Water chief operating officer, Chris Krygier. “The improvements will help us maintain our high-quality of water services for the many customers that we have the great privilege to serve.”

GW-Farmers service area covers the Town of Sahuarita, located 15 miles south of Tucson, as well as unincorporated areas within the county.

As of the end of 2024, GW-Farmers served 3,494 active water connections covering approximately 21.0 square miles of service area. The utility represents 5.4% of Global Water’s total active service connections.

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 service. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 17.7 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.

Company Contact:
Michael Liebman
CFO and SVP
Tel (480) 999-5104
Email Contact        

Investor Relations Contact:
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Email contact

FAQ

How much will Global Water Resources (GWRS) revenue increase from the new GW-Farmers rate approval?

The new rates are expected to generate approximately $1.1 million in additional annual revenue based on 2023 test-year service connections.

What is the implementation schedule for GWRS's GW-Farmers rate increase in 2025-2026?

The rate increase will be implemented in three stages: 50% on May 1, 2025, 25% on November 1, 2025, and the final 25% on May 1, 2026.

How many customers does Global Water's GW-Farmers utility serve in Pima County?

GW-Farmers serves 3,494 active water connections across approximately 21.0 square miles in the Sahuarita area.

What percentage of Global Water Resources' total connections does GW-Farmers represent?

GW-Farmers represents 5.4% of Global Water Resources' total active service connections.

How much is the acquisition premium that GWRS can recover in a future rate case?

The ACC approved the deferral of approximately $3 million in acquisition premium recovery for a future rate case.