Global Water Resources secures new rate increase strategy
Global Water Resources Implements New Rate Strategy
Global Water Resources, Inc. (NASDAQ: GWRS), a specialized company in water management, has made significant strides forward by receiving approval from regulators for new water rates concerning its GW-Farmers utility. This decision marks a pivotal moment for the utility, which operates within Pima County.
The Arizona Corporation Commission (ACC) green-lighted a structured approach to the rate increase, projected to generate approximately $1.1 million in additional annual revenue. This increase is based on service connections tested in 2023 and is crucial for promoting community development.
This new rate strategy will be implemented in three distinct phases. The first phase entails a 50% increase set to commence on May 1, followed by a 25% hike on November 1. The final 25% increase will take effect on May 1 of the following year. This phased approach allows for a gradual adjustment while ensuring sustained service quality.
Enhancing Services and Community Impact
Additionally, as part of the adjustments, the ACC has allowed the deferral of an acquisition premium amounting to around $3 million associated with Global Water's acquisition of GW-Farmers. This financial strategy means that the recovery of these costs will occur in future rate cases, helping to balance immediate financial impacts.
Chris Krygier, Chief Operating Officer of Global Water, emphasized the positive outcomes of the approved rates. He stated, “The additional revenue generated by the new rates will support our efforts to improve GW-Farmers for the benefit of its customers and the broader community.” His comments highlight the company’s commitment to upgrading service provisions for its valued customers and the surrounding community.
Understanding GW-Farmers Service Area
The GW-Farmers utility covers the Town of Sahuarita and extends to unincorporated areas within the county, reaching approximately 21.0 square miles and serving over 3,494 active water connections as of the end of the previous year. This utility represents a notable 5.4% contribution to Global Water's total active service connections, reinforcing the importance of optimizing resource management within the growing community.
Committed to Innovative Water Management
At its core, Global Water Resources champions innovative water management through its Total Water Management (TWM) approach. This strategy integrates the management of water, wastewater, and recycled water systems, thereby efficiently utilizing resources and enhancing sustainability. TWM not only fosters advanced technologies and infrastructure, such as remote metering but also places an emphasis on real water conservation efforts that are essential in water-scarce regions.
The success of Global Water in implementing TWM practices has garnered significant accolades. The company has been recognized nationally as a 'Utility of the Future Today'—an award that underscores its effective water reuse practices. Furthermore, they received the Excellence in Departmental Practice Award from Cityworks for innovative asset management strategies that bolster long-term operational effectiveness.
Environmental Sustainability Initiatives
By embracing TWM, Global Water has effectively recycled more than 1 billion gallons of water each year since 2004, totaling over 17.7 billion gallons. These efforts play a vital role in protecting water supplies and addressing the increasing demand resulting from population growth in metropolitan areas.
Company Contact Information
For inquiries regarding financial operations, you can reach Michael Liebman, CFO and SVP at (480) 999-5104. Additionally, investor relations are helmed by Ron Both and Grant Stude of CMA Investor Relations, who can be contacted at (949) 432-7566. Both departments are readily available to assist with any questions pertaining to company operations and overall strategic direction.
Frequently Asked Questions
What is the reason behind the new rates for GW-Farmers?
The new rates are designed to generate additional revenue to improve services and maintain operational efficiency for the GW-Farmers utility.
How will the rate increase be implemented?
The rate increase will be phased in three stages: 50% on May 1, 25% on November 1, and the final 25% on May 1 of the following year.
What is Total Water Management (TWM)?
TWM is an integrated approach to managing water resources, including the management of water, wastewater, and recycled water, to optimize usage and support sustainability.
How has Global Water Resources been recognized in the industry?
Global Water has received multiple awards for its water management practices, including national recognition as a 'Utility of the Future Today' and other industry accolades.
Who can I contact for more information about Global Water?
You can reach out to Michael Liebman, CFO and SVP, or the investor relations team at CMA Investor Relations for queries regarding the company.
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