Global Water Resources' Q4 2024: Contradictions in Rate Cases, Acquisitions, and Regulatory Outlook

These are the key contradictions discussed in Global Water Resources' latest 2024Q4 earnings call, specifically including: Rate Case and Regulatory Environment, Acquisition Pipeline and Timeline, and Rate Case Update and Timing:



Operational Growth and Service Connections:
- Global Water Resources reported a 4.4% increase in active service connections to 64,520 as of December 30, 2024.
- The growth was driven by organic customer expansion and investments in infrastructure improvements to ensure safe and reliable service.

Economic Drivers and Industrial Growth:
- Metro Phoenix experienced a 20.3% increase in single-family dwelling building permits from 2023 to 2024, and the City of Maricopa saw an 11.5% increase.
- The growth is fueled by a housing shortage and strong economic indicators, including a booming industrial manufacturing boom, with $50 billion invested in the state in 2024.

Regulatory Activity and Rate Cases:
- The company filed a rate case for its largest utilities, Santa Cruz Water Company and Palo Verde Utilities Company, based on a 2024 test year.
- The rate case aims to address inflation, capital investments, and organic growth, with proposed rate increases of approximately $7.5 million under consideration at the Arizona Corporation Commission.