PHOENIX, AZ, July 11, 2012 /CNW/ - GWR Global Water Resources Corp. (TSX:GWR) and Global Water Resources, Inc. ("Global Water") today announced that seven of their utilities have filed rate applications with the Arizona Corporation Commission ("ACC"). The filing is the initial step in obtaining rate increases for the six utilities that are currently not achieving their authorized rate of return. The seventh utility was previously ordered by the ACC to file a rate application. The next milestone is for the applications to be found "sufficient" by the ACC, which initiates the ACC's evaluation of the applications. The evaluation process, including a formal rate hearing, is expected to take approximately 12 months from the time the ACC deems the filings sufficient. After the hearing the ACC will issue its decision and the new rates will become effective.
For the six utilities that are under-earning, the current revenue requirement was set in a rate case that concluded in 2010 and was based on a 2008 historic test year. Since that time, certain costs related to utility operations have increased. Global Water has also continued to make the necessary capital improvements to maintain industry-leading performance for compliant operations, reliability, customer service, and critical water resource management.
The applications request an adjustment to the revenue requirements for all seven utilities representing a collective average rate increase of approximately 25%.
About GWR Global Water Resources Corp and Global Water
GWR Global Water Resources Corp. owns an approximate 48.1% interest in Global Water, a leading water resource management and technology company that owns and operates water, wastewater and recycled water utilities, and provides technology-enabled services through its unique platform, FATHOMTM Utility-to-Utility ("U2U™") Solutions. Initially developed by Global Water to support and optimize its own utilities, FATHOMTM OS is a cloud-based geo-spatial integrated suite of utility-to-utility solutions proven to increase utility revenue, decrease operating costs and improve customer service. FATHOM™ puts water management tools in customers' hands.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. These statements reflect The Company's current views regarding future events and operating performance, are based on information currently available to GWR Global Water Resources, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the Company's ability to continue to secure and attract future strategic and investment capital. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including factors described in this press release and those discussed in its publicly available disclosure documents, as filed by GWR Global Water Resources on SEDAR (www.sedar.com) except as updated herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update these forward-looking statements.
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