Global Water Resources (NASDAQ: GWRS) details Arizona rate settlement terms
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Global Water Resources, Inc. has reached a settlement agreement for its Arizona rate cases for GW-Santa Cruz and GW-Palo Verde, subject to Arizona Corporation Commission approval. The settlement includes an increase in GW-Santa Cruz’s annual revenue requirement of approximately $2.3 million based on a 55% equity/45% debt capital structure and a 9.6% return on equity, with new rates requested to take effect on November 1, 2026. GW-Palo Verde will withdraw its current rate case and refile in 2027 using a 2026 test year, while seeking to increase a temporary bill credit by about $0.4 million annually. The company estimates the median GW-Santa Cruz customer using 5,500 gallons per month would see a bill increase of about $2.68.
Positive
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Negative
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Insights
Settlement shifts GW-Santa Cruz revenue up while boosting GW-Palo Verde customer credits.
The settlement gives GW-Santa Cruz an approximately $2.3 million annual revenue requirement increase on a $63.6 million rate base, using a 55% equity/45% debt structure and 9.6% return on equity. This supports infrastructure recovery within the regulated framework.
For GW-Palo Verde, the current rate case is withdrawn and refiled in 2027, while customers receive a higher temporary bill credit of about $0.4 million per year until that case is resolved. Overall financial impact depends on final Arizona Corporation Commission approval and future 2027 rate outcomes.
8-K Event Classification
3 items: 1.01, 8.01, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GW-Santa Cruz revenue increase: $2.3 million annually
Capital structure: 55% equity / 45% debt
Return on equity: 9.6%
+5 more
8 metrics
GW-Santa Cruz revenue increase
$2.3 million annually
Increase in annual revenue requirement under settlement
Capital structure
55% equity / 45% debt
Regulatory capital structure for GW-Santa Cruz rates
Return on equity
9.6%
Allowed ROE for GW-Santa Cruz under settlement
Rate base
$63.6 million
GW-Santa Cruz rate base underlying settlement revenue
Median bill increase
$2.68 per month
For 5,500 gallons monthly usage at GW-Santa Cruz
Temporary bill credit
$0.4 million annually
Increase to GW-Palo Verde customer credit until next rate case
Systems operated
39 systems
Water, wastewater and recycled water systems owned and operated
Water recycled annually
Over 1 billion gallons
Annual recycled water volume, 19.3 billion gallons since 2004
Key Terms
rate case, Settlement Agreement, return on equity, rate base, +2 more
6 terms
rate case financial
"previously filed general rate cases for Global Water – Santa Cruz Water Company, Inc. and Global Water – Palo Verde Utilities Company, Inc."
A rate case is a formal process where a company, like a utility, asks regulators to approve higher or lower prices for its services. It matters because the decision affects how much consumers pay and how much the company can earn, impacting everyone's financial interests.
Settlement Agreement financial
"entered into a settlement agreement (the “Settlement Agreement”) detailing the terms upon which the parties have agreed"
A settlement agreement is a legally binding deal where two sides resolve a dispute—often a lawsuit—by agreeing on terms such as payments, actions, or changes in behavior instead of continuing the case to trial. For investors it matters because settlements can create immediate costs, limit future liabilities or risks, and change a company's cash flow, reputation, or ongoing obligations much like paying a negotiated bill to avoid a lengthy, uncertain fight.
return on equity financial
"a capital structure of 55% common equity/45% debt 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.
rate base financial
"with a rate base of $63.6 million, reflecting a capital structure of 55% common equity/45% debt"
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.
temporary bill credit financial
"to increase the amount of the temporary bill credit for customers related to the Company’s premature revenue collection"
A temporary bill credit is a short-term reduction applied to a customer’s invoice that lowers the amount they owe for a specific billing period, often used to fix an error, offer a promotion, or compensate for a service issue. It matters to investors because these credits reduce near-term revenue and cash flow and can signal customer-service problems or marketing tactics; like a one-time coupon or refund, they change short-term financial results without altering long-term pricing.
Total Water Management technical
"The company has been recognized for its highly effective implementation of Total Water Management (TWM)."
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (480 ) 360-7775
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act.
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
As previously reported, on March 5, 2025, two of the regulated subsidiaries of Global Water Resources, Inc. (the “Company”), Global Water – Santa Cruz Water Company, Inc. (“GW-Santa Cruz”) and Global Water – Palo Verde Utilities Company, Inc. (“GW-Palo Verde”), each filed a rate case application and related schedules with the Arizona Corporation Commission (the “ACC”) for, among other things, increased water and wastewater rates, respectively. Additionally, on April 14, 2026, GW-Santa Cruz, GW-Palo Verde, Residential Utility Consumer Office (“RUCO”), and the ACC Utilities Division (the “Staff”) filed a Notice of Settlement and Request to Modify Procedural Schedule relating to the settlement of the rate cases.
On April 28, 2026, GW-Santa Cruz, GW-Palo Verde, RUCO, and the Staff entered into a settlement agreement (the “Settlement Agreement”) detailing the terms upon which the parties have agreed to bifurcate and settle the rate cases. Pursuant to the Settlement Agreement, the parties have agreed to, among other things:
•an increase in GW-Santa Cruz’s annual revenue requirement of approximately $2.3 million with a capital structure of 55% common equity/45% debt and a return on equity of 9.6%;
•a requested effective date of the new rates for GW-Santa Cruz of November 1, 2026; and
•the withdrawal of the GW-Palo Verde rate case, with the agreement that GW-Palo Verde will refile its rate application in 2027 using a 2026 test year without seeking formula rates.
Additionally, GW-Palo Verde has agreed to seek an amendment to Decision No. 79424 (July 18, 2024) issued by the ACC to increase the amount of the temporary bill credit for customers related to the Company’s premature revenue collection. The Settlement Agreement provides that the increase to the temporary bill credit is anticipated to coincide with new rates described above for GW-Santa Cruz going into effect and is expected to reduce revenue by approximately $0.4 million annually. The parties have also agreed that the final resolution relating to this bill credit will be addressed in GW-Palo Verde’s 2027 rate case.
The Settlement Agreement remains subject to the approval of the ACC, and there can be no assurance that the ACC will approve the Settlement Agreement in the form filed or modify provisions.
The foregoing summary of the terms of the Settlement Agreement is qualified in its entirety by reference to the full text of the agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K (this “Form 8-K”) and incorporated herein by reference.
Item 8.01 Other Events.
On April 28, 2026, the Company issued a press release announcing the Settlement Agreement, which is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
Cautionary Note Regarding Forward-Looking Statements
This Form 8-K contains forward-looking statements within the meaning of federal securities laws and which reflect the Company’s expectations regarding future events. The forward-looking statements involve a number of assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the Company’s plans, expectations and estimates relating to the terms of the Settlement Agreement. These statements may be identified by the use of words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify some forward-looking statements, but not all forward-looking statements include these words. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, such as those described in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s views as of the date of this Form 8-K. 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.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
| Exhibit No. | Description | |||||||
| 10.1 | Settlement Agreement, dated April 28, 2026, by and among Global Water – Santa Cruz Water Company, Inc., Global Water – Palo Verde Utilities Company, Inc., Residential Utility Consumer Office, and Arizona Corporation Commission Utilities Division | |||||||
| 99.1 | Press Release, dated April 28, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GLOBAL WATER RESOURCES, INC. | ||||||||
Date: April 30, 2026 | /s/ Michael J. Liebman | |||||||
| Michael J. Liebman | ||||||||
| Chief Financial Officer | ||||||||
Global Water Resources Files Settlement Agreement for GW-Santa Cruz and GW-Palo Verde Rate Cases
If Approved, Settlement Agreement Provides $2.3 Million in Additional Net Revenue for GW-Santa Cruz to Support Infrastructure Investment
PHOENIX, AZ – April 29, 2026 – Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, has filed a settlement agreement with the Arizona Corporation Commission (ACC) related to the previously filed general rate cases for Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz) and Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde). This unanimous settlement agreement, negotiated with ACC Utilities Division Staff and the Residential Utility Consumer Office (RUCO), details the terms upon which the parties have agreed to bifurcate and settle the rate cases, including, among other things:
•an increase in GW-Santa Cruz’s annual revenue requirement of approximately $2.3 million with a rate base of $63.6 million, reflecting a capital structure of 55% common equity/45% debt and a return on equity of 9.6%;
•a requested effective date of the new rates for GW-Santa Cruz of November 1, 2026;
•an estimated bill increase for the median water user consuming 5,500 gallons per month of only $2.68;
•the withdrawal of the GW-Palo Verde rate case, with the agreement that GW-Palo Verde will refile its rate application in 2027 using a 2026 test year; and
•GW-Palo Verde’s commitment to seek an increase to the amount of the temporary bill credit for its customers of approximately $0.4 million annually until resolution of the next GW-Palo Verde rate case. The increase to the temporary bill credit is anticipated to coincide with the new rates described above for GW-Santa Cruz going into effect.
“We appreciate the joint efforts of the ACC Utilities Division Staff and RUCO in reaching this unanimous settlement,” commented Global Water Chief Operating Officer Chris Krygier.
Global Water President and CEO Ron Fleming added, “This settlement agreement marks an important step toward the inclusion of the legacy Southwest Plant in base rates. With most of the GW-Santa Cruz water assets included for rate recovery in this settlement agreement, we can turn our attention towards the goal of achieving a fair outcome in our anticipated rate application for GW-Palo Verde in 2027 for its wastewater assets. We will continue working with our community stakeholders to outline the need and benefit of these assets and why they are appropriate to include for rate recovery.”
The procedural schedule for GW-Santa Cruz’s rate case remains on track, with a hearing before an Administrative Law Judge scheduled for August 2026, followed by a Recommended Opinion and Order for the Commission’s consideration at a future open meeting.
The company expects to begin planning efforts for the anticipated 2027 rate application for GW-Palo Verde and plans to provide future updates, as appropriate.
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
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around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 19.3 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 contain forward-looking statements within the meaning of federal securities laws and which reflect the Company’s expectations regarding future events. The forward-looking statements involve a number of assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the Company’s plans, expectations and estimates relating to the terms of the Settlement Agreement. These statements may be identified by the use of words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify some forward-looking statements, but not all forward-looking statements include these words. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, such as those described in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s views 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 J. Liebman CFO and SVP Tel (480) 999-5104 mike.liebman@gwresources.com | Investor Relations: Ron Both or Grant Stude Encore Investor Relations Tel (949) 432-7450 GWRS@encore-ir.com | ||||
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FAQ
What does Global Water Resources (GWRS) announce in this 8-K filing?
Global Water Resources announces a settlement agreement for Arizona rate cases covering GW-Santa Cruz and GW-Palo Verde. The agreement outlines a $2.3 million annual revenue increase for GW-Santa Cruz and expanded temporary bill credits for GW-Palo Verde customers, pending Arizona Corporation Commission approval.
How much additional revenue could GW-Santa Cruz generate under the GWRS settlement?
GW-Santa Cruz’s annual revenue requirement would increase by approximately $2.3 million under the settlement. This is based on a $63.6 million rate base, a 55% equity and 45% debt capital structure, and a 9.6% return on equity, if regulators approve the agreement.
How will the GWRS settlement affect customer bills at GW-Santa Cruz?
For GW-Santa Cruz, the settlement implies an estimated bill increase of about $2.68 per month for a median water user consuming 5,500 gallons. New rates are requested to take effect November 1, 2026, subject to Arizona Corporation Commission approval and completion of the rate case process.
What happens to the GW-Palo Verde rate case under the Global Water (GWRS) settlement?
GW-Palo Verde will withdraw its current rate case and refile in 2027 using a 2026 test year. Until that future case is resolved, the company will seek to increase the temporary bill credit by about $0.4 million annually for customers, aligning with the new GW-Santa Cruz rate timing.
When are the new GW-Santa Cruz rates under the GWRS settlement expected to begin?
The parties request an effective date of November 1, 2026 for GW-Santa Cruz’s new rates. This timing depends on Arizona Corporation Commission review, a scheduled August 2026 hearing before an Administrative Law Judge, and a subsequent Recommended Opinion and Order being adopted.
Is the Global Water Resources (GWRS) settlement agreement already approved by regulators?
No, the settlement agreement still requires approval from the Arizona Corporation Commission. The filing notes there is no assurance the Commission will approve it as filed and that provisions could be modified through the regulatory review and decision process.