Global Water Resources, Inc. (NASDAQ: GWRS) filed a settlement agreement with the Arizona Corporation Commission on April 29, 2026, to resolve pending rate cases for its Santa Cruz Water Company and Palo Verde Utilities.
The Santa Cruz Water Company portion of the settlement provides an annual revenue requirement increase of approximately $2.3 million, based on a rate base of $63.6 million and a capital structure of 55% common equity and 45% debt. The company’s return on equity is 9.6%, and the new rates are slated to take effect on November 1, 2026. The settlement also incorporates the legacy Southwest Plant into the base rate, which is expected to raise the median user’s monthly bill by about $2.68 for a 5,500‑gallon consumption level.
For Palo Verde Utilities, the agreement involves the withdrawal of the current rate case and a commitment to refile a new rate application in 2027 using a 2026 test year. The company will also seek an increase in temporary bill credits of roughly $0.4 million per year for customers until the next rate case is resolved.
The settlement is a key step in Global Water Resources’ strategy to recover the $70 million invested in rate‑baseable assets and to support growth in Arizona’s fastest‑growing metropolitan area. By resolving the Santa Cruz case, the company can focus on its 2027 wastewater rate application for Palo Verde, maintaining regulatory momentum and positioning the business for future expansion.
"This settlement agreement marks an important step toward the inclusion of the legacy Southwest Plant in base rates," said CEO Ron Fleming. "We appreciate the joint efforts of the ACC Utilities Division Staff and RUCO in reaching this unanimous settlement," added COO Chris Krygier.
No immediate market reaction has been reported following the filing of the settlement agreement.
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