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.