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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 14, 2022
 
GLOBAL WATER RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3775690-0632193
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(IRS Employer
Identification No.)
21410 N. 19th Avenue #220
Phoenix,Arizona85027
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (480) 360-7775
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act.
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareGWRSThe NASDAQ Stock Market, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 8.01 Other Events.
On August 28, 2020, 12 of the 18 regulated utilities of Global Water Resources, Inc. (the “Company”) each filed a rate case application with the Arizona Corporation Commission (the “ACC”) for water, wastewater, and recycled water rates based on a 2019 test year. In addition to a rate increase, the Company requested, among other things, the consolidation of water and/or wastewater rates for certain of its utilities, including its Red Rock, Santa Cruz, Palo Verde, Picacho Water, and Picacho Utilities located in Pinal County. Of the Company’s utilities filing a rate case, these utilities make up approximately 96% of the Company's active service connections; provide or will provide water, wastewater and recycled water services; and are expected to create economies of scale that are beneficial to all customers if consolidated.
On July 12, 2022, the ACC voted in an open meeting to approve the recommended order and opinion in the rate case with certain amendments, subject to a final signed decision. Pursuant to the vote, the ACC approved a collective annual revenue requirement increase of approximately $2.2 million (including the acquisition premiums discussed below) based on 2019 test year service connections, phased-in over time, as follows:
IncrementalCumulative
August 1, 2022$1,457,462$1,457,462
January 1, 2023$675,814$2,133,277
January 1, 2024$98,585$2,231,861
Whereas this phase-in of additional revenues was determined using a 2019 test year, to the extent that the number of active service connections has increased and continues to increase from 2019 levels, the additional revenues may be greater than the amounts set forth above. On the other hand, if active connections decrease or the Company experiences declining usage per customer, the Company may not realize all of the anticipated revenues.
Additionally, the ACC approved, among other things, (i) the consolidation of water and/or wastewater rates to create economies of scale that are beneficial to all customers when rates are consolidated.; (ii) acquisition premiums relating to the Company’s acquisitions of its Red Rock and Turner Ranches utilities, which increase the rate base for such utilities and result in an increase in the annual collective revenue requirement included in the table above; (iii) the Company’s ability to annually adjust rates to flow through changes in property tax expense and/or changes in income tax expense, without the necessity of a rate case proceeding; and (iv) the Sustainable Water Surcharge, which will allow semiannual surcharges to be added to customer bills based on verified costs of new water resources.
Finally, the order and opinion requires the Company to work with ACC staff and the Residential Utility Consumer Office to prepare a Private Letter Ruling request to the Internal Revenue Service (“IRS”) to clarify whether the failure to eliminate the deferred taxes attributable to assets condemned in a transaction governed by Section 1033 of the Internal Revenue Code ("Code") would violate the normalization provisions of Section 168(i)(9) of the Code. If the IRS accepts the request and issues its ruling, a copy must be provided to the ACC. Within 90 days after providing the ruling to the ACC, ACC Staff shall prepare, for ACC consideration, a memorandum and proposed order regarding guidance issued within the Private Letter Ruling. This may result in further action by the ACC, which we are unable to predict due to the uncertainties involved, that could have a adverse impact on our financial condition, results of operations and cash flows.
On July 13, 2022, the Company issued a press release announcing the ACC approval for the rate increase and related matters. A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of federal securities laws and which reflect the Company’s expectations regarding future events. The 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 concerning the anticipated benefits resulting from the Company’s approved rate application, including the Company’s expected collective revenue increase due to new water and wastewater rates and benefits from consolidation of rates, the Company’s contemplated Private Letter Ruling request relating to ADIT, and any action taken by the ACC as a result of the outcome, and other statements that are not historical facts. These statements may be identified by the use of words such as “could,” “would,” “may,” “might,” “will,” “expect,” “likely,” “believe,” “continue,” “anticipate,” “estimate,” “intend,” “plan,” “project” and other similar expressions to identify some forward-looking statements, but not all forward-looking statements include these words. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, such as those described in the Company’s filings with the Securities and Exchange Commission


(the “SEC”), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and any subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward -looking statements, which reflect management’s views as of the date of this Current Report on Form 8-K. The Company undertakes 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.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
   
99.1  
104  Cover Page Interactive Data File (formatted as Inline XBRL)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  GLOBAL WATER RESOURCES, INC.
  
Date: July 14, 2022 /s/ Joanne Ellsworth
  Joanne Ellsworth
  Executive Vice President, Corporate Affairs

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Global Water Resources Receives ACC Approval for Rate Increase
PHOENIX, AZ – July 13, 2022 – Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a pure-play water resource management company, 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.
“As with our previous rate increase, the additional revenue we expect to generate from the higher rates approved yesterday is anticipated to provide the financial resources we need to meet the current and future needs of our customers,” stated Global Water president and CEO, Ron Fleming. “We believe this will enable us to sustain the high quality of our water and wastewater infrastructure, as well as improve services for the communities we have the privilege to serve.”
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.
“We applaud the ACC’s approval of our acquisition premiums as a critical step forward in dealing with numerous challenges in our industry, and it supports our mission of acquiring utilities that require upgrades and improvements in customer service,” noted Global Water chief strategy officer, Chris Krygier. “We continue to seek acquisitive opportunities that are synergistic to our growing portfolio of water and wastewater utilities and particularly where our application of Total Water Management would be beneficial to the communities we serve.”
“We expect the consolidation of our utilities in Pinal County will create economies of scale that will be beneficial to all of our customers,” added Fleming. “This is because as we continue to grow organically and through acquisitions, yesterday’s approved revenue increase will be spread over more active customer connections. Looking ahead, 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 tariff structure is believed to be unique in Arizona. It incentivizes customers to conserve water through a rebate program that provides 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 aid from its customer assistance program, which was expanded to include those who had difficulty paying their utility bills due to COVID-19.
The customer assistance program is available to qualified customers who meet low-income guidelines, have a medical hardship, are a deployed service member, disabled veteran or furloughed worker. Such qualified customers are eligible to receive a bill credit benefit of up to $350 annually for their water utility service and up to $350 for their wastewater utility service, totaling $700 annually.
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If you are a Global Water customer in need of assistance, additional information is available at www.gwresources.com/customerassistance. You may also call a Global Water customer service representative at 866-940-1102 or email CustomerService@gwresources.com.
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 at sec.gov and in the investor section of the company’s website at www.gwresources.com.
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 25 systems which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix. Global Water recycles over 1 billion gallons of water annually.
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 recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. TWM includes additional smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth. To learn more, visit www.gwresources.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements which reflect the company's expectations regarding future events. The 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 concerning the anticipated benefits resulting from our approved rate application, including our expected collective revenue increase due to new water and wastewater rates and benefits from consolidation of rates, our strategies and future business plans, acquisition plans and our ability to complete additional acquisitions, and other statements that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative 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, market, regulatory, and other factors, including the duration and severity of the COVID-19 pandemic and the actions to contain the virus or treat its impact, such as the efficacy of vaccines (particularly with respect to emerging strains of the virus). Factors that may also 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 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 any forward-looking statements, which reflect management’s views 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.

Company Contact:
Michael J. Liebman
CFO and SVP
Tel (480) 999-5104
mike.liebman@gwresources.com

Investor Relations:
Ron Both or Justin Lumley
CMA Investor Relations
Tel (949) 432-7566
GWRS@cma.team
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Media & ESG Contact:
Tim Randall
CMA Tel (949) 432-7572
GWRS@cma.team
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