Global Water Unveils Historic Rate Hike in Post-Pandemic Era

On September 5, 2024, Global Water Resources announced a planned rate increase of 11%, set to occur gradually over the next few years, with the first adjustment scheduled for mid-2026.

According to Vice President and Regional Manager Jon Corwin, the motivation behind this increase stems from city growth and rising inflation. “Our current rates are based on costs, a snapshot in time, from 2019,” Corwin explained. He noted that utility costs have surged by roughly 28% in the past five years.

The company cites various factors contributing to the increased expenditures, including labor, chemical costs, water quality sampling, and significant investments aimed at accommodating the city’s expansion. Notably, Global Water recently spent $2.2 million on enhancements for its wet well and lift station screen.

While the increase may come as a surprise to some, indications of a rate adjustment have been present since last year. In May, the utility suggested that ongoing city growth necessitated more resources and subsequent rate hikes.

The definitive rate change will not be revealed until after Global Water submits its rate case to the Arizona Corporation Commission in March. This upcoming rate case, along with relevant water legislation, is set to be discussed at the Maricopa City Council meeting on Tuesday.