PHOENIX, July 13. 28, 2022 (GLOBE NEWSWIRE) — Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a pure water resource management company, has received approval from the Arizona Corporation Commission (ACC) to d set new water and wastewater rates for 96% of its active service connections, effective August 1, 2022.
The last tariff procedure approved by the ACC for Global Water dates back to 2014, which resulted in an increase in tariffs which was phased in each year. He helped fund major infrastructure investments by the company.
The new rates are expected to result in an increase in community revenue of approximately $2.2 million on an annualized basis, based on service connections in the 2019 test year, and will be implemented in three stages, on 1 August 2022, January 1, 2023 and January 1, 2024.
“As with our previous rate increase, the additional revenue we expect to generate from the higher rates approved yesterday should provide the financial resources we need to meet the current and future needs of our customers,” the chairman said. and CEO of Global Water, Ron Flamand. “We believe this will enable us to maintain the high quality of our water and wastewater infrastructure, as well as improve services for the communities we are privileged to serve.
The ACC also approved the consolidation of the rates and corporate entities of several Global Water utilities in Pinal County, including Red Rock, Santa Cruz, Palo Verde, Picacho Water and Picacho Utilities. In addition, the ACC approved, among other things, acquisition premiums related to Global Water’s acquisition of the Red Rock and Turner Ranches utilities. This approval authorizes Global Water to reclassify a portion of the goodwill on its balance sheet as an asset repayable through increased tariffs over a 25-year period. The rate increase of $2.2 million includes acquisition premiums.
“We welcome the ACC’s approval of our acquisition awards as a critical step in addressing many challenges in our industry, and it supports our mission to acquire utilities that require upgrades and improvements. customer service,” said Chris, Chief Strategy Officer of Global Water. Krygier. “We continue to seek acquisition opportunities that synergize with our growing portfolio of water and wastewater utilities and particularly where our application of total water management would benefit the communities we we serve.”
“We anticipate that consolidating our utilities in Pinal County will create economies of scale that will benefit all of our customers,” Fleming added. “Indeed, as we continue to grow organically and through acquisitions, yesterday’s approved revenue increase will be spread across more active customer connections. Going forward, our industry-leading approach to utility consolidation, automation and water resource management will continue to ensure safe, high-quality water services for the community.
Global Water’s existing six-tier rate structure is considered unique in Arizona. It incentivizes customers to save water through a rebate program that offers a credit on their water bills if they use 10% less than the average customer in their community.
In 2021, Global Water customers across Arizona also received more than $82,000 in financial assistance from its Customer Assistance Program, which was expanded to include those who had difficulty paying their bills. utilities due to COVID-19.
The Customer Assistance Program is available to qualified customers who meet low income guidelines, have medical challenges, are a deployed service member, disabled veteran, or furloughed worker. These qualified customers are eligible to receive a bill credit benefit of up to $350 per year for their water service and up to $350 for their wastewater service, for a total of $700 per year .
If you are a Global Water customer requiring assistance, additional information is available at https://www.gwresources.com/customer-assistance. You can also call a Global Water customer service representative at 866-940-1102 or email [email protected]
Further details of the rate case will be described in the company’s current report on Form 8-K filed with the Securities and Exchange Commission, which will be available on sec.gov and in the investors section of the company’s website. at www.gwresources.com.
About the world’s water resources
Global Water Resources, Inc. is a leading water resources management company that owns and operates 25 systems that provide water, wastewater and reclaimed water services. The company’s service areas are located primarily in growth corridors around metro Phoenix. Global Water recycles over 1 billion gallons of water per year.
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 by owning and operating water, wastewater and reclaimed water services in the same geographic area to maximize the beneficial use of recycled water. The TWM includes additional smart water management programs such as remote metering infrastructure and other advanced technologies, tariff designs and incentives that result in real conservation. TWM helps protect the water supply in areas where water is scarce and experiencing population growth. To learn more, visit www.gwresources.com.
Caution Regarding Forward-Looking Statements
This press release contains certain forward-looking statements that reflect the Company’s expectations regarding future events. 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 regarding the expected benefits of our approved rate application, including the expected increase in our collective revenues due to new water and wastewater rates and the benefits rate consolidation, our strategies and our future activities. plans, acquisition plans and our ability to make additional acquisitions, and other statements that are not historical facts as well as statements identified by words such as “expects”, “anticipates”, “has intends”, “plans”, “believes”, “seeks”, “estimates”, or the negative form of these terms, or other words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to a number of risks, uncertainties and assumptions, most of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from these expectations due to changes in political, economic, business, commercial, regulatory and other factors, including the duration and severity of the COVID-19 pandemic and actions to contain the virus. or to address its impact, such as the effectiveness of vaccines (particularly against emerging strains of the virus). Factors that could affect future results are disclosed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission ( the “SEC”), which are available at the SEC’s website at www.sec.gov. This includes, but is not limited to, our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on forward-looking statements, which reflect the opinions of management as of the date hereof. We undertake 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.
Michael J. Liebman
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