- Global Water Resources (GWR) has received approval from the Arizona Corporation Commission (ACC) to establish new water and wastewater rates effective August 1
- The last rate increase approved by the ACC in 2014 helped fund substantial infrastructure investments by the company
- Global Water’s six-tier tariff structure incentivizes customers to conserve water through a rebate program
- Global Water Resources is a water resource management company
- Global Water Resources Inc. (GWR) opened trading at C$17.43 per share
Global Water Resources (GWR) has received approval from the Arizona Corporation Commission (ACC) to establish new water and wastewater rates effective August 1.
The last rate proceeding approved by the ACC for Global Water was in 2014, which resulted in a rate increase that was phased-in annually. It has helped fund substantial infrastructure investments by the company.
The new rates are expected to result in a collective revenue increase of approximately $2.2 million on an annualized basis, based on 2019 test year service connections, and will be implemented in three stages, on August 1, 2022, January 1, 2023, and January 1, 2024.
Global Water President and CEO, Ron Fleming commented on the news.
“As with our previous rate increase, the additional revenue we expect to generate from the higher rates approved yesterday is anticipated to provide the financial resources we need to meet the current and future needs of our customers. We believe this will enable us to sustain the high quality of our water and wastewater infrastructure, as well as improve services for the communities we have the privilege to serve.”
In addition, the ACC approved acquisition premiums related to Global Water’s acquisition of Red Rock and Turner Ranches utilities. This approval authorizes Global Water to reclassify a portion of goodwill on its balance sheet as an asset that can be reimbursed through increased rates over a period of 25 years. The $2.2 million rate increase includes the acquisition premiums.
“We applaud the ACC’s approval of our acquisition premiums as a critical step forward in dealing with numerous challenges in our industry, and it supports our mission of acquiring utilities that require upgrades and improvements in customer service,” noted Global Water chief strategy officer, Chris Krygier.
“We continue to seek acquisitive opportunities that are synergistic to our growing portfolio of water and wastewater utilities and particularly where our application of Total Water Management would be beneficial to the communities we serve.”
Global Water’s existing six-tier tariff structure incentivizes customers to conserve water through a rebate program that provides a credit on their water bills if they use 10 per cent less than the average customer in their community.
In 2021, Global Water customers across Arizona also received more than $82,000 in financial aid from its customer assistance program.
Global Water Resources is a water resource management company that owns and operates 25 systems that provide water, wastewater, and recycled water services.
Global Water Resources Inc. (GWR) opened trading at C$17.43 per share.