Global Water Resources Receives ACC Approval for Rate Increase for GW-Santa Cruz

The approved settlement establishes a $63.6 million rate base and a 9.6% return on equity for GW-Santa Cruz.

Rhea-AI Summary

Global Water Resources (NASDAQ: GWRS) received approval for new GW-Santa Cruz water rates taking effect December 1, 2026. The company expects the rates to increase annual revenue by approximately $2.3 million, based on a 2024 test year with updates for subsequent utility investment. The approved settlement sets a $63.6 million rate base—the investment recognized for calculating an authorized return—with 55% common equity, 45% debt and a 9.6% return on equity.

A median customer using 5,500 gallons monthly faces an estimated $2.68 monthly bill increase. Separately, a proposed increase in GW-Palo Verde temporary bill credits would reduce annual revenue by approximately $0.4 million if approved, with an expected December 1, 2026 effective date.

3 points · 0 major

PositiveiHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.GW-Santa Cruz rates effective December 1, 2026 are expected to add approximately $2.3 million in annual revenue.
• Minor point. Forward-looking: it has not happened yet and may not happen.GW-Palo Verde and Pima County utility rate filings are anticipated in first-half 2027, with new rates estimated for 2028.
• Minor point. Forward-looking: it has not happened yet and may not happen.Next GW-Santa Cruz rate application is tentatively scheduled for 2028, with new rates estimated for 2029.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Proposed GW-Palo Verde temporary bill credit increase would reduce annual revenue by approximately $0.4 million, if approved.
• Minor pointFuture rate filing and implementation timelines remain tentative and subject to ACC review and approval.

News Explained

The company anticipates first-half 2027 rate filings for GW-Palo Verde, GW-Saguaro, GW-Farmers and GW-Ocotillo, with rates estimated for 2028; its next GW-Santa Cruz filing is tentatively planned for 2028, with rates estimated for 2029, and all schedules remain subject to ACC review.

Key Figures

Annual revenue increase: Approximately $2.3 million New rates effective: December 1, 2026 Rate base: $63.6 million +4 more

Annual revenue increase

Approximately $2.3 million

GW-Santa Cruz rates; based on a 2024 test year with post-test-year plant updates

New rates effective

December 1, 2026

Approved GW-Santa Cruz rates

Rate base

$63.6 million

Approved settlement

Capital structure

55% common equity; 45% debt

Approved settlement

Return on equity

9.6%

Approved settlement

Median customer monthly bill increase

$2.68

For a GW-Santa Cruz customer consuming 5,500 gallons per month

Potential annual revenue reduction

Approximately $0.4 million

Separate proposed GW-Palo Verde bill-credit increase, if approved

Key Terms

rate base, capital structure, return on equity, test year

4 terms

rate base regulatory

"The approved settlement provides for a rate base of $63.6 million"

Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.

capital structure financial

"a capital structure of 55% common equity and 45% debt"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

View in glossary

return on equity financial

"and a return on equity of 9.6%"

Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.

test year regulatory

"based on a 2024 test year with updates for post-test-year plant"

A test year is a specific 12-month period regulators or companies use as the baseline to evaluate financial performance, set prices, or approve budgets. Think of it like a photo of one year used to judge how much money a business needs or earns; it matters to investors because decisions based on that snapshot can change approved revenues, tariffs or allowed profits and may not reflect longer-term trends.

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New Rates Expected to Support Infrastructure Investment and Safe, Reliable Water Service for Customers, Increasing GW-Santa Cruz’s Annual Revenue by Approximately $2.3 Million

PHOENIX, Nov. 04, 2026 (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 Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz). GW-Santa Cruz, the company’s regional water utility, serves Pinal County, Arizona, including the City of Maricopa, Red Rock, and Inland Port Arizona. The new rates will take effect on December 1, 2026.

The rate increase is expected to increase GW-Santa Cruz’s annual revenue by approximately $2.3 million, based on a 2024 test year with updates for post-test-year plant. The approved settlement provides for a rate base of $63.6 million (the value of utility investment recognized for calculating an authorized return through customer rates), a capital structure of 55% common equity and 45% debt, and a return on equity of 9.6%.

For the median GW-Santa Cruz water customer consuming 5,500 gallons per month, the new rates are estimated to result in a monthly bill increase of $2.68. Customers who may need support in paying their bill should visit https://www.gwresources.com/customer-assistance for more details.

“We have served customers through GW-Santa Cruz for more than two decades, and the new rates are expected to support our continued investment in the infrastructure needed to provide safe, reliable water service to our customers,” said Global Water President and CEO Ron Fleming. “We believe the new rates approved by the ACC balance recovery of our investments with the needs of the communities we have the privilege to serve. We appreciate the efforts of ACC Utilities Division Staff and the Residential Utility Consumer Office throughout the rate review process.”

The $2.3 million increase in annual revenue relates to GW-Santa Cruz and does not reflect a separate proposed increase of the temporary bill credit for Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde) customers related to the company’s Southwest Plant, which is expected to be effective on the same date and would reduce annual revenue by approximately $0.4 million, if approved.

Beyond this rate order, Global Water anticipates first-half 2027 filings for GW-Palo Verde and its Pima County utilities—GW-Saguaro, GW-Farmers and GW-Ocotillo—using a 2026 test year and 2027 post-test year, with new rates estimated to take effect in 2028. The company has also begun preliminary planning for its next GW-Santa Cruz rate application, tentatively scheduled for 2028 using a 2027 test year, with new rates estimated for 2029. All filing and rate implementation timelines are tentative, and outcomes remain subject to ACC review and approval.

About Global Water Resources

Global Water Resources, Inc. is a leading water resource management company that owns and operates 39 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 21.7 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.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of federal securities laws and reflect the company’s expectations regarding future events. These forward-looking statements include, but are not limited to, statements concerning the timing and expected impact of new GW-Santa Cruz rates, including the expected increase in annual revenue requirement and estimated customer bill impact; the company’s plans to support its continued investment in infrastructure and anticipated customer benefits; the proposed increase in GW-Palo Verde’s temporary customer bill credit and its expected revenue impact; the timing and plans for GW-Palo Verde’s next rate application; and other statements that are not historical facts. Forward-looking statements may be identified by words such as “expect,” “intend,” “estimate,” “anticipate,” “plan,” “believe,” “may,” “will,” and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including future regulatory decisions and requirements, the timing and extent of cost recovery through rates, changes in customer connections and water consumption, and the cost and timing of infrastructure investment. Additional risks are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s filings with the Securities and Exchange Commission, including its most recently filed reports on Form 10-K and Form 10-Q and subsequent filings. Investors are cautioned not to place undue reliance on forward-looking statements, which reflect management’s views only as of the date of this press release. The company undertakes no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.

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

Investor Relations Contact:
Ron Both or Grant Stude
Encore Investor Relations 
Tel (949) 432-7450
Email Contact

FAQ

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When do Global Water Resources' new GW-Santa Cruz rates take effect, and how much revenue will they add?

The new GW-Santa Cruz rates take effect December 1, 2026, and are expected to increase annual revenue by approximately $2.3 million. That estimate uses a 2024 test year with updates for subsequent utility investment and excludes the separate proposed GW-Palo Verde bill credit increase.

How much will the GW-Santa Cruz rate increase add to customer bills?

For the median GW-Santa Cruz customer consuming 5,500 gallons per month, the new rates are estimated to increase the monthly bill by $2.68.

What future rate applications is Global Water Resources planning?

Global Water anticipates first-half 2027 filings for GW-Palo Verde and Pima County utilities GW-Saguaro, GW-Farmers and GW-Ocotillo, using a 2026 test year and 2027 post-test year, with new rates estimated for 2028. Preliminary planning for GW-Santa Cruz targets a tentative 2028 application using a 2027 test year, with rates estimated for 2029. All timelines and outcomes remain subject to ACC review and approval.