Global Water Resources, Inc. has received approval from the Arizona Corporation Commission (ACC) to establish new water and wastewater rates for 96% of its active service connections, effective August 1, 2022. 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. The ACC also approved the consolidation of rates and corporate entities for 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 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.