−Removed: GWRI is a water resource management company that owns, operates, and manages thirty-two water, wastewater, and recycled water public utility systems in strategically located communities, principally in metropolitan Phoenix and Tucson, Arizona.
+Added: GWRI is a water resource management company that owns, operates, and manages thirty-nine water, wastewater, and recycled water public utility systems in strategically located communities, principally in metropolitan Phoenix and Tucson, Arizona.
We seek to deploy an integrated approach, referred to as “Total Water Management.” Total Water Management is a comprehensive approach to water utility management that reduces demand on scarce non-renewable water sources and costly renewable water supplies, in a manner that ensures sustainability and greatly benefits communities both environmentally and economically.
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is being pumped from groundwater sources faster than it is replenished naturally, a condition known as overdraft.
−Removed: of water scarcity, such as the arid western U.S., water recycling represents a relatively simple, inexpensive, and energy-efficient means of augmenting water supply as compared to transporting surface water, groundwater, or desalinated water from other locations.
+Added: In areas of water scarcity, such as the arid western U.S., water recycling represents a relatively simple, inexpensive, and energy-efficient means of augmenting water supply as compared to
+Added: transporting surface water, groundwater, or desalinated water from other locations.
Approximately 70% of the water provided for municipal use is currently utilized for non-potable applications where recycled water could potentially be utilized.
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water industry has traditionally not taken advantage of advances in technology available to enhance revenue, increase operating efficiencies and decrease operating costs (including labor and energy costs).
−Removed: Areas of opportunity include automated meter infrastructure, systems management, and administrative functions, such as customer billing and remittance systems.
+Added: Areas of opportunity include AMI, systems management, and administrative functions, such as customer billing and remittance systems.
Key drivers for the lack of investment in technology in water and wastewater utilities have been the historical lack of incentives offered or standards imposed by regulators to achieve efficiencies and lower costs and the ownership of the U.S.
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The utility segment of the U.S.
−Removed: water industry is highly fragmented, with approximately 50,000 water utilities and approximately 16,000 community wastewater utilities, according to the EPA .
−Removed: The majority of the approximately 50,000 water utilities are serving a population of 5,000 or less, and 85% of the water utilities serve only 10% of the population.
+Added: water industry is highly fragmented, with approximately 50,000 water utilities and approximately 15,000 community wastewater utilities, according to the NAWC.
+Added: Ninety per cent of the country’s water utilities are serving a population of 10,000 or less, and more than half serve fewer than 500 people.
• Large Public Sector Ownership .
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Water quality standards, first introduced with the Clean Water Act in 1972 and the Safe Drinking Water Act in 1974, are becoming increasingly stringent and numerous.
−Removed: The American Water Works Association estimates investment needs for buried drinking water infrastructure will total more than $1 trillion over the next 25 years, and the American Society of Civil Engineers expects the U.S.
−Removed: will need to find additional capital investments of up to $434 billion annually, in order to update and grow the nation’s drinking water and wastewater systems.
+Added: According to the EPA, estimated investments in excess of $1 trillion in water and wastewater infrastructure will be needed over the next 20 years to ensure safe drinking water while protecting local waterways.
+Added: The American Society of Civil Engineers expects the U.S.
+Added: will need to find additional capital investments of up to $99 billion annually for the next twenty years in order to update and grow the nation’s drinking water and wastewater systems.
Private Sector Opportunities
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• Privatization involves a transfer of responsibility for, and ownership of, the utility from the municipality to private investors.
−Removed: We believe investor-owned utilities that have greater access to capital are generally more capable of making mandated and other necessary infrastructure upgrades to both water and wastewater utilities, addressing increasingly stringent environmental and human health standards, and navigating a wide variety of regulatory processes.
+Added: Investor-owned utilities that have greater access to capital are generally more capable of making mandated and other necessary infrastructure upgrades to both water and wastewater utilities, addressing increasingly stringent environmental and human health standards, and navigating a wide variety of regulatory processes.
In addition, investor-owned utilities that achieve larger scale are able to spread overhead expenses over a larger customer base, thereby reducing the costs to serve each customer.
Since many administrative and support activities can be efficiently centralized to gain economies of scale and sharing of best practices, companies that participate in industry consolidation have the potential to improve operating efficiencies, lower costs, and improve service at the same time.
−Removed: We are a water resource management company that provides water, wastewater, and recycled water utility service.
−Removed: We believe we are a leader in Total Water Management practices, such as water scarcity management and advanced water recycling applications.
+Added: We are a water resource management company that provides water, wastewater, and recycled water utility service, leading in Total Water Management practices, such as water scarcity management and advanced water recycling applications.
Our long-term goal is to become one of the largest investor-owned operators of integrated water and wastewater utilities in areas of the arid western U.S., where water scarcity management is necessary for long-term economic sustainability and growth.
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• Integrating and standardizing water, wastewater and recycled water infrastructure delivery systems using a separate recycled water distribution system of purple pipe to maximize effective and safe water reuse, conserve water resources, reduce energy, treatment and consumable costs (e.g., chemicals, filter media, other general materials, and supplies), provide operational efficiencies, and align the otherwise disparate objectives of water sales and conservation.
−Removed: ◦ In addition to the previous example, which relates to the increasing adoption and demand for recycled water usage, the separate recycled water distribution system of purple pipe, and the Company’s water conservation achievements, the Company believes that its model results in additional benefits from an
−Removed: economic perspective due to lower use of power and consumables.
−Removed: For every gallon of recycled water that is directly reused while already on land surface, the need to pump additional scarce groundwater and surface water is eliminated.
+Added: ◦ In addition to the previous example, which relates to the increasing adoption and demand for recycled water usage, the separate recycled water distribution system of purple pipe, and the Company’s water conservation achievements, the Company believes that its model results in additional benefits from an economic perspective due to lower use of power and consumables.
+Added: For every gallon of recycled water that is directly reused while already on land surface, the need to pump additional scarce groundwater and surface water is
Such additional groundwater and surface water would otherwise need to be treated and distributed in accordance with the Safe Drinking Water Act, which is costly and requires significant energy.
• Gaining market and regulatory acceptance of broad utilization of recycled water through agreements with developers, strategic relationships with governments, academic research, and publication as industry experts, coupled with public education and community outreach campaigns.
−Removed: ◦ For example, the Company has public-private partnerships formally adopted through memorandums of understanding with the City of Maricopa, City of Casa Grande, City of Coolidge and Town of Sahuarita.
−Removed: Each memorandum of understanding reflects the Company’s intent to deploy Total Water Management.
−Removed: The Company also has 154 ICFAs with landowners or developer entities that include requirements for usage of recycled water and other attributes that support the Company’s Total Water Management model.
+Added: ◦ For example, the Company has public-private partnerships formally adopted through memoranda of understanding and/or license/franchise agreements with the City of Maricopa, City of Casa Grande, City of Coolidge, and Town of Sahuarita.
+Added: Many of these agreements reflect the Company’s intent to deploy Total Water Management.
+Added: The Company also has 149 ICFAs in effect with landowners or developer entities that include requirements for usage of recycled water and other attributes that support the Company’s Total Water Management model.
As discussed above, the Company’s integrated provider model, which is focused on the maximum use of recycled water, underpins its Clean Water Act Section 208 Regional Water Quality Management Plans and Designations of Assured Water Supply.
In addition, the Company has won numerous awards for education, outreach and conservation in the water industry.
−Removed: • Incorporating automated processes, such as supervisory control and data acquisition, automated meter infrastructure and back-office technologies and “green” billing, which reduce operating costs, improve system availability and reliability, and improve customer satisfaction.
+Added: • Incorporating automated processes, such as supervisory control and data acquisition, AMI and back-office technologies and “green” billing, which reduce operating costs, improve system availability and reliability, and improve customer satisfaction.
◦ Supervisory Control and Data Acquisition .
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◦ Automated Meter Infrastructure .
−Removed: The Company has implemented automated meter infrastructure for 99% of its active customers with a substantial proportion of its remaining customers in the process of being, or planned to be, upgraded with such functionality.
−Removed: Currently, all meters in our Maricopa service areas allow for automated meter infrastructure.
−Removed: This technology reads each meter numerous times per day (often hourly) and continuously transmits the meter readings back to a centralized data base through a communications tower and cellular transmission units.
+Added: The Company has implemented AMI for approximately 90% of its active customers with a substantial proportion of its remaining customers in the process of being, or planned to be, upgraded with such functionality.
+Added: Currently, all meters in our Maricopa service areas allow for AMI.
+Added: This technology reads each meter numerous times per day (often hourly) and continuously transmits the meter readings back to a centralized database through a communications tower and cellular transmission units.
The data is then presented to the utility, and is made available to customers, through a simple user interface.
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The Company employs a series of technologies that allow for the automation of the billing and remittance process.
−Removed: The Company also provides its customers with over seven ways to pay, with the majority of options being integrated with the Company’s back-office technologies.
−Removed: In combination with automated meter infrastructure, this suite of technology has minimized the use of human labor and reduced the potential for human error for the entire billing and remittance process, while providing better customer service.
−Removed: We believe our Total Water Management-based business model provides us with a significant competitive advantage in high growth, water scarce regions.
+Added: The Company also provides its customers with several ways to pay, with the majority of options being integrated with the Company’s back-office technologies.
+Added: In combination with AMI, this suite of technology has minimized the use of human labor and reduced the potential for human error for the entire billing and remittance process, while providing better customer service.
+Added: Our Total Water Management-based business model provides us with a significant competitive advantage in high growth, water scarce regions.
Based on our experience and discussions with developers, we believe developers prefer our approach because it provides a bundled solution to infrastructure provision and improves housing density in areas of scarce water resources.
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Our Total Water Management model, an integrated approach to the use of potable and non-potable water to manage the entire water cycle, both conserves water and maximizes its total economic value.
−Removed: The application of the Total Water Management model has proven to be effective as a means of water scarcity management that promotes sustainable communities and helps achieve greater dwelling unit density in areas where the availability of sustainable water can be a key constraint on development.
−Removed: Our implementation of the Total Water Management philosophy in Arizona has led to the development of beneficial relationships with key regulatory bodies.
+Added: The application
+Added: of the Total Water Management model has proven to be effective as a means of water scarcity management that promotes sustainable communities and helps achieve greater dwelling unit density in areas where the availability of sustainable water can be a key constraint on development.
Our Regulated Utilities
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A summary description of our utilities at December 31, 2025 is set forth in the following table and described in more detail below:
−Removed: Company Date of Acquisition (A) or Formation (F) Service Provided Square Miles of Service Area (1) Active Service Connections Average Monthly Rate Per Service Connection
+Added: Company Date of Acquisition (A) or Formation (F) Service Provided Square Miles of Service Area (1)
+Added: Active Service Connections
GW-Santa Cruz 2004 (A) Water 91 30,147
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The City of Maricopa continues to grow, as demonstrated by our addition of 9,008 active service connections, which represents 3.5% annualized growth from December 2021 to December 2025.
−Removed: Development in the area is still considered to be affordable, with the median home value being $359,000 compared to $460,000 in the Phoenix Metro area.
+Added: Development in the area is still considered to be affordable, with the median home value being $346,350 compared to $450,000 in the Phoenix metropolitan area.
We operate in this region through GW-Santa Cruz and GW-Palo Verde, both of which we acquired in 2004.
−Removed: GW-Santa Cruz served 29,121 active service connections as of December 31, 2024 and revenue from GW-Santa Cruz represented
−Removed: approximately 41.0% and 39.3% of our total revenue for the years ended December 31, 2024 and 2023, respectively.
+Added: GW-Santa Cruz served 30,147 active service connections as of December 31, 2025 and revenue from GW-Santa Cruz represented approximately 40.2% and 41.0% of our total revenue for the years ended December 31, 2025 and 2024, respectively.
GW-Palo Verde served 29,727 active service connections as of December 31, 2025 and revenue from GW-Palo Verde represented approximately 48.7% and 50.7% of our total revenue for the years ended December 31, 2025 and 2024, respectively.
−Removed: The GW-Santa Cruz and GW-Palo Verde service areas include approximately 207 square miles, which we believe provide further opportunities for growth.
+Added: The GW-Santa Cruz and GW-Palo Verde service areas include approximately 207 square miles, which provide further opportunities for growth.
Most of the GW-Santa Cruz and GW-Palo Verde infrastructure is less than twenty years old.
−Removed: GW-Santa Cruz and GW-Palo Verde provide water, wastewater and recycled water service, respectively, under an innovative public-private partnership memorandum of understanding with the City of Maricopa in Pinal County for approximately 278 square miles of its planning area.
+Added: Santa Cruz and GW-Palo Verde provide water, wastewater and recycled water service, respectively, under an innovative public-private partnership memorandum of understanding with the City of Maricopa in Pinal County for approximately 278 square miles of its planning area.
We signed a similar memorandum of understanding with the City of Casa Grande to partner in providing water, wastewater, and recycled water service to an approximate 100 square miles of its western region for anticipated growth.
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GW-Hassayampa is a wastewater utility and has a CC&N for approximately 43 square miles in an area in western Maricopa County known as Tonopah.
−Removed: GW-Hassayampa currently has no active service connections;
−Removed: however, its service area lies directly in the expected path of future growth in the far west valley of metropolitan Phoenix, which we believe should provide opportunities for growth once development commences in this area.
+Added: GW-Hassayampa has two active service connections as of December 31, 2025, and its service area lies directly in the expected path of future growth in the far west valley of metropolitan Phoenix, which we believe should provide opportunities for growth once development commences in this area.
GW-Belmont served 662 active service connections as of December 31, 2025.
−Removed: The service areas include approximately 111 square miles and provides water service to Maricopa County west of the Hassayampa River and to two small subdivisions in northern Scottsdale.
+Added: The service area includes approximately 111 square miles and provides water service to Maricopa County west of the Hassayampa River and to two small subdivisions in northern Scottsdale.
Within the GW-Belmont service area, we have entered into agreements with developers of mixed use, master planned communities to serve approximately 100,000 anticipated home sites plus commercial, schools, parks and industrial developments at full build-out.
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GW-Turner served 962 residential and commercial irrigation customers as of December 31, 2025.
−Removed: We operate in this region through GW-Saguaro and GW-Farmers.
−Removed: We also formed GW-Ocotillo in 2023, in anticipation of the acquisition of water systems in this region from the City of Tucson.
−Removed: For additional information on the anticipated acquisition, refer to Note 2 – “Acquisitions” of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this report.
−Removed: GW-Saguaro served 1,571 active water connections as of December 31, 2024.
−Removed: The service area includes approximately 20 square miles of service area located in Sahuarita, Arizona.
−Removed: Rate proceedings were completed in 2024, which resulted, among other things, in consolidation of the following Pima County subsidiary water utilities into GW-Saguaro:
−Removed: • Global Water - Las Quintas Water Company, Inc.
−Removed: • Global Water - Mirabell Water Company, Inc.
−Removed: • Global Water - Francesca Water Company, Inc.
−Removed: • Global Water - Tortolita Water Company, Inc.
−Removed: • Global Water - Lyn Lee Water Company, Inc.
−Removed: • Global Water - Rincon Water Company, Inc.
−Removed: • Global Water - Red Rock Water Company, Inc.
−Removed: In February 2023, the Company completed the acquisition of Farmers Water Co., an operator of a Pima County water utility with a service area in Sahuarita, Arizona and in unincorporated Pima County, Arizona.
−Removed: As of December 31, 2024, GW-Farmers served 3,494 active water connections with approximately 21.0 square miles of service area.
+Added: We operate in this region through GW-Saguaro, GW-Farmers and GW-Ocotillo.
+Added: We formed GW-Ocotillo for the purpose of acquiring water systems in this region from the City of Tucson, which we acquired in July 2025.
+Added: For additional information on the completed acquisition, refer to Note 2 – “Acquisitions” of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this report.
+Added: GW-Saguaro and GW-Farmers served 1,565 and 3,510 active water connections, respectively, in Sahuarita, Arizona and unincorporated Pima County, Arizona as of December 31, 2025.
+Added: GW-Ocotillo served 2,002 active water connections in unincorporated Pima County, Arizona as of December 31, 2025.
+Added: Collectively, the Company’s Pima County utilities serve approximately 50 square miles of service area.
Our water and wastewater utility operations are subject to extensive regulation by U.S.
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The ACC also has authority to establish uniform systems of accounts and approve the terms of contracts with both affiliates and customers.
−Removed: We are also subject to various federal, state and local laws and regulations governing the storage of hazardous materials, the management and disposal of hazardous and solid wastes, discharges to air and water, the cleanup of contaminated sites, dam safety, fire protection service in the areas we serve and other matters relating to the protection of the environment, health and safety.
+Added: We are also subject to various federal, state and local laws and regulations governing the storage of hazardous materials, the management and disposal of hazardous and solid wastes, discharges to air and water, the cleanup of contaminated sites, fire protection service in the areas we serve and other matters relating to the protection of the environment, health and safety.
In addition to regulation by governmental entities, our operations may also be affected by civic or consumer advocacy groups.
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Water samples across our water system are analyzed on a regular basis in material compliance with regulatory requirements.
−Removed: Water quality tests are conducted at subcontracted laboratory facilities in addition to providing continuous online instrumentation for monitoring parameters, such as turbidity and disinfectant residuals, and allowing for adjustments to chemical treatment based on changes in incoming water quality.
−Removed: For 2024, we achieved a compliance rate of 99.9% for meeting state and federal drinking water standards and 99.9% for compliance with wastewater requirements, for an overall compliance rating of 99.9%.
+Added: Water quality tests are conducted at contracted laboratory facilities in addition to providing continuous online instrumentation for monitoring parameters, such as turbidity and disinfectant residuals, and allowing for adjustments to chemical treatment based on changes in
+Added: incoming water quality.
Compliance with governmental regulations is of utmost importance to us, and considerable time and resources are spent ensuring compliance with all applicable federal, state and local laws and regulations.
−Removed: Capital expenditures and operating costs to comply with environmental mandates traditionally have been recognized by state public utility commissions as appropriate for inclusion in establishing rates.
+Added: Capital expenditures and operating costs to comply with environmental mandates traditionally have been recognized by the ACC as appropriate for inclusion in establishing rates.
We generally expect to recover expenses associated with compliance for environmental and health and safety standards through rate increases, but this recovery may be affected by “regulatory lag”, that is, the delay between the utility’s test year and the issuance of a rate order approving new rates.
+Added: We continue to evaluate and monitor U.S.
+Added: federal, state and local legislation and regulations but cannot predict the impact of new or changing regulations on our business at this time.
Safe Drinking Water Act
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Contaminants of emerging concern (“CECs”) are chemicals and other substances that have no regulatory standard but have been discovered in water or in the environment where they had not previously been detected, or were only present at insignificant levels.
−Removed: We believe CECs may form the basis for additional regulatory initiatives and requirements in the future.
+Added: CECs may form the basis for additional regulatory initiatives and requirements in the future.
We rely on governmental agencies to establish regulatory standards regarding CECs, and we meet or exceed these standards, when established.
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The NPDWR are legally enforceable primary standards and treatment techniques that apply to public water systems and are designed to limit the levels of contaminants in drinking water.
−Removed: On April 10, 2024, the EPA finalized the NPDWR establishing legally enforceable levels, called maximum contaminant levels (“MCLs”), for six per- and polyfluoroalkyl substances (“PFAS”) in drinking water.
+Added: On April 10, 2024, the EPA finalized the NPDWR establishing legally enforceable levels, called MCLs, for six PFAS in drinking water.
The EPA also finalized health-based, non-enforceable MCL goals for these PFAS.
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Beginning in 2029, public water systems that have PFAS in drinking water which violate one or more of these MCLs must take action to reduce levels of these PFAS in their drinking water and must provide notification to the public of the violation.
−Removed: We are committed to compliance with the NPDWR and are in process of complying with the first requirement of the rule mandating initial monitoring for all of our utilities.
+Added: We are committed to compliance with the NPDWR and are in process of complying with the first PFAS requirement of the rule mandating initial monitoring for all of our utilities.
The Company expects that compliance with the NPDWR will require increased capital expenditures for PFAS-contaminated water treatment and other operating costs.
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In October 2024, the EPA announced a final rule requiring drinking water systems to identify and replace lead pipes within ten years.
−Removed: In accordance with the 2021 Lead and Copper Rule Revision and in connection with the 2024 Lead and Copper Rule Improvements, the Company has conducted an inventory of its pipes.
−Removed: The inventory has been substantially completed and found no lead pipes in our water systems.
+Added: In accordance with the 2021 Lead and Copper Rule Revision and in connection with the 2024 Lead and Copper Rule Improvements, the Company has conducted an inventory of its service lines.
+Added: As of December 31, 2025, the evaluation was substantially complete and no lead pipes were found in our water systems.
+Added: For the seven water systems acquired from the City of Tucson in July 2025, the Company is assessing the baseline inventory.
+Added: Further compliance actions and prioritization will be
+Added: impacted by compliance monitoring results and cooperation with customers with respect to the customer-owned portion of the service lines, as necessary.
While the Company is evaluating the full impact of this new rule, we do not believe it will have a material impact on our results of operations.
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While we are not presently regulated to meet source control requirements, we maintain source control through various Codes of Practice that have been accepted by the ACC as enforceable limits on consumer discharges to sanitary sewer systems.
−Removed: We believe we maintain the necessary permits and approvals for the discharges from our water and wastewater facilities.
+Added: We maintain the necessary permits and approvals for the discharges from our water and wastewater facilities.
Arizona Regulatory Agencies
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9.60% 0.4 June 27, 2023 79383 July 1, 2024
−Removed: GW-Farmers 9.6% 0.1 July 1, 2018 77269 July 1, 2019
−Removed: Pending and Anticipated Rate Cases
GW-Farmers (4)
−Removed: In process In process June 27, 2024 In process In process
+Added: 9.60% 1.1 June 27, 2024 80695 May 1, 2025
+Added: Pending Rate Cases
GW-Santa Cruz (5)
−Removed: — — Anticipated 2025 — Anticipated 2026
+Added: In process In process March 5, 2025 In process In process
GW-Palo Verde (5)
−Removed: — — Anticipated 2025 — Anticipated 2026
+Added: In process In process March 5, 2025 In process In process
+Added: (1) Approved incremental annual revenue represents the aggregate annual revenue increase following the final phase-in period.
To the extent that the number of active service connections has increased and continues to increase from a rate case’s test year 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.
−Removed: (2) Approved incremental annual revenue represents the aggregate annual revenue increase following the final phase-in period, which was effective January 1, 2024.
−Removed: (3) A pproved incremental annual revenue represents the aggregate annual revenue increase following the final phase-in period.
+Added: (2) The final phase-in of rates under this rate case was effective January 1, 2024.
(3) The first increase for GW-Saguaro was effective July 1, 2024.
−Removed: The subsequent four increases will be effective on January 1 of each subsequent year, with the majority of the revenue increase phased in by January 1, 2025.
−Removed: (4) On January 10, 2025, GW-Farmers filed with the ACC a unanimous settlement agreement between GW-Farmers, RUCO and the Utilities Division Staff of the ACC.
−Removed: Among other elements, the unanimous settlement agreement calls for an increase in GW-Farmers’ annual revenue requirement of $1.1 million and a return on equity of 9.6%, with rates to be phased-in over three periods, starting with 50% of the increase effective on May 1, 2025, with subsequent 25% portions of the increase effective November 1, 2025 and May 1, 2026.
−Removed: The unanimous settlement agreement is under advisement with the ALJ, and the Company anticipates a decision in the first half of 2025.
−Removed: (5) In February 2025, the Company notified the ACC of its intention to file a rate case for its GW-Santa Cruz and GW-Palo Verde utilities in 2025.
−Removed: The GW-Santa Cruz and GW-Palo Verde rate case will be based on a test year ending December 31, 2024 with updates for changes in post-test year plant.
−Removed: The Company is in the process of preparing for the rate case and intends to request a net increase to its annual revenue requirement of $6.5 million, to be implemented with the first phase beginning in May 2026 and the second phase in January 2027.
−Removed: For a full summary of the Company’s current regulatory activity, including other approved details of recent rate cases, refer to Note 3 – “Regulatory Matters” of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this report.
+Added: The subsequent four increases will be effective on January 1 of each subsequent year.
+Added: The majority of the revenue increase was phased in on January 1, 2025.
+Added: (4) Rates are being phased-in over three periods.
+Added: 50% of the increase was effective on May 1, 2025, with another 25%effective on November 1, 2025.
+Added: The final 25% increase will be phased in on May 1, 2026.
+Added: (5) In March 2025, the Company filed a general rate case application with the ACC related to its GW-Santa Cruz and GW-Palo Verde utilities.
+Added: The GW-Santa Cruz and GW-Palo Verde rate case is based on a test year ending December 31, 2024, with updates for changes in post-test year plant.
+Added: Testimony commenced in the fourth quarter of 2025, and hearings are scheduled to begin in August 2026.
+Added: For a full summary of the Company’s current regulatory activity, including other approved details of recent rate cases, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations—Rate Regulation Updates”, included in Part II, Item 7 of this report and Note 3 — “Regulatory Matters” of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this report.
Environmental Regulation
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A DAWS is subject to periodic review and renewal by the ADWR and can be increased as demand grows within the service territory, subject to the physical availability of existing water supplies and any additional supplies acquired for use within the DAWS.
−Removed: At present, we have obtained a DAWS in the Maricopa/Casa Grande service territory (GW-Santa Cruz) for approximately 22,900 acre-feet of water use.
+Added: At present, we have obtained a DAWS in the Maricopa/Casa Grande region (GW-Santa Cruz) for two distinct service areas for approximately 22,900 acre-feet of water use in total.
Over time, we anticipate GW-Santa Cruz will apply to increase the DAWS as sufficient increased demand is established in the area.
+Added: We have significant unused DAWS capacity in the larger service area in the north, including the incorporated City of Maricopa.
+Added: In a smaller service area southwest of the City of Maricopa within Pinal County, the DAWS coverage is limited and more constrained by state law and groundwater regulations, which may impact developers’ ability to obtain final plat approval if the DAWS is not expanded.
Under our highly efficient Total Water Management model, we have achieved much lower per-unit potable water use rates than would be expected for average developments.
In 2025, we used approximately 9,501 acre-feet of the annually available 22,900 acre-feet already permitted in the DAWS.
−Removed: In our West Valley service territory (GW-Belmont), we are seeking a DAWS in the future.
−Removed: In our other service areas, we rely upon a CAWS obtained by developers to demonstrate an assured water supply, or will apply for a DAWS in the future when required.
−Removed: There is no assurance that the ADWR would provide a new CAWS, DAWS or add any additional acre-feet to a DAWS in the future.
+Added: For our West Valley service territory (GW-Belmont), we are seeking a DAWS in the future.
In December 2024, we obtained a DAWS for part of our Pima County service territory (GW-Farmers), effective January 1, 2025.
The DAWS covers approximately 5,300 acre-feet of water use, and in 2025, we pumped approximately 985 acre-feet.
+Added: In our other service areas, we rely upon a CAWS obtained by developers to demonstrate an assured water supply, or will apply for a DAWS in the future when required.
+Added: There is no assurance that the ADWR would provide a new CAWS, DAWS or add any additional acre-feet to a DAWS in the future.
Outside of Arizona’s Active Management Areas, the “adequate water supply” program requires a determination of whether there is an adequate water supply—similar to an assured water supply—but it does not necessarily foreclose development when the showing cannot be made.
Unless the county government has voted to make the requirement mandatory, a development (outside of Active Management Areas) that cannot demonstrate access to an adequate water supply is generally required only to disclose this fact, although as a practical matter few developments have proceeded on this basis.
+Added: See “Risk Factors—Legal, Regulatory, and Legislative Factors—Our ability to expand into new service areas and to expand current water and wastewater service depends on approval from regulatory agencies.
+Added: Failure to obtain required regulatory approvals will adversely affect future growth,” included in Part I, Item 1A of this report, for additional information.
+Added: In June 2025, Ag-to-Urban was signed into law, which is a potentially transformative development for water sustainability, housing, and economic growth across the state.
+Added: The program allows landowners who cease agricultural operations to convert their water rights for use in new development.
+Added: According to the ADWR, up to 384,000 acres of agricultural land in the Phoenix and Pinal AMAs are eligible for ag-to-urban conversion, representing an area with the potential to support over 1 million new homes.
+Added: We anticipate the Ag-to-Urban program will help advance our strategic focus on Total Water Management and support growth across our service areas, while also providing expected benefits to the long-term sustainability of the state’s aquifers, including the aquifer beneath the City of Maricopa.
+Added: The Ag-to-Urban program went into effect on September 26, 2025 and ADWR began accepting applications from landowners the same day.
Other Environmental, Health, and Safety (Including Water Quality) Matters
22 unchanged sentences
In some instances, individual raw water supplies do not meet the legislative requirements for certain constituents.
−Removed: In those cases, we use well-head, centralized, point-of-use or blending treatment systems to ensure water quality meets potable standards.
+Added: In those cases, we use well-head, centralized, point-of-use and/or blending treatment systems to ensure water quality meets potable standards.
• Recycled Water.
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We focus on technological innovations that allow us to deliver high-quality water and customer service with minimal potential for human error, delays, and inefficiencies.
−Removed: The comprehensive technology platform that we use includes supervisory control and data acquisition (SCADA), automated meter infrastructure, and geographical information system (GIS) technologies, which we use to map and monitor our physical assets and water resources on an automated, real-time basis with fewer people than the standard water utility model requires.
+Added: The comprehensive technology platform that we use includes supervisory control and data acquisition (SCADA), AMI, and geographical information system (GIS) technologies, which we use to map and monitor our physical assets and water resources on an automated, real-time basis with fewer people than the standard water utility model requires.
Our systems allow us to detect and resolve potential problems promptly, accurately, and efficiently before they become more serious, which both improves customer service and optimizes and extends the efficient performance and life of our assets.
−Removed: The comprehensive technology platform that we use includes automated meter infrastructure technology, which allows us to read water meters remotely rather than physically, improves water resources accounting, allows for identification of high water usage and water theft from disconnected meters.
+Added: The comprehensive technology platform that we use includes AMI technology, which allows us to read water meters remotely rather than physically, improves water resources accounting, allows for identification of high water usage and water theft from disconnected meters.
We also use automated voice, internet billing, payment processing, and customer service applications that contribute to additional reduced headcount and a reduction in associated personnel costs.
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The replication of our standard facility also improves design, construction and operating efficiency because we are able to employ similar, proven processes and equipment and technologies at each of our facilities.
−Removed: Although there has not traditionally been a significant economic incentive or other reward for automation and resource efficiency in our industry, we believe our use of automation in lieu of labor, together with our emphasis on streamlined operations and conservation, will position us well for continued profitable growth and allow us to take advantage of future incentives or rewards that may be available to water utilities that are able to successfully enhance the use of renewable resources.
−Removed: As an owner and operator of regulated utilities, we do not face competition within our existing service areas because Arizona law provides the holder of a CC&N for water and wastewater service with an exclusive right to provide that service within the ACC-designated service area, as against other public service corporations.
+Added: Although there has not traditionally been a significant economic incentive or other reward for automation and resource efficiency in our industry, we believe our use of automation in lieu of labor, together with our emphasis on streamlined operations and conservation, positions us well for continued profitable growth and allows us to take advantage of future incentives or rewards that may be available to water utilities that are able to successfully enhance the use of renewable resources.
+Added: As an owner and operator of regulated utilities, we do not face competition within our existing service areas because Arizona law provides the holder of a CC&N for water and wastewater service with an exclusive right to provide that service within the ACC-designated service area.
In addition, the high cost of constructing water and wastewater systems in an existing market creates a barrier to entry.
We do, however, face competition from other water and wastewater utilities for new service areas and with respect to the acquisition of smaller utilities.
−Removed: We believe our principal competitors for new service areas and acquisitions in Arizona are EPCOR Water Arizona Inc., Arizona Water Company, Central States Water Resources, NW Natural Water Company, LLC, Ullico Inc.
−Removed: and Liberty Utilities.
−Removed: We believe competition for new service areas and acquisitions is based on relationships with municipalities and developers, experience in making acquisitions, the ability to finance and obtain regulatory approval, quality and breadth of products and services, the ability to integrate both water and wastewater service, and implement conservation practices throughout the service areas, price, speed, and ease of implementation.
+Added: Our principal competitors for new service areas and acquisitions in Arizona are EPCOR Water Arizona Inc., Arizona Water Company, Central States Water Resources, NW Natural Water Company, LLC, Ullico Inc., Liberty Utilities, Community Water of Arizona and Voyager Water Company.
+Added: Competition for new service areas and acquisitions is based on relationships with municipalities and developers, experience in making acquisitions, the ability to finance and obtain regulatory approval, quality and breadth of products and services, the ability to integrate both water and wastewater service, and implement conservation practices throughout the service areas, price, speed, and ease of implementation.
If we seek to extend our service outside Arizona, we will face competition from other regional or national water utilities for these opportunities.
−Removed: Although we believe we compete effectively in our regulated businesses, our competitors may have more resources and experience than we have and may therefore have a competitive advantage.
+Added: Although we compete effectively in our regulated businesses, our competitors may have more resources and experience than we have and may therefore have a competitive advantage.
Customer demand for our water during the warmer months is generally greater than other times of the year due primarily to additional consumption of water in connection with irrigation systems, swimming pools, cooling systems and other outside water use.
Throughout the year, and particularly during typically warmer months, demand may vary with temperature, as well as the timing and overall levels of rainfall.
−Removed: In the event that temperatures during the typically warmer months are cooler than normal, or if there is more rainfall than normal, the customer demand for our water may decrease and therefore, adversely affect our revenue.
+Added: In the event that temperatures during the typically warmer months are cooler than normal, or if there is more rainfall than normal, the customer demand for our water may decrease and therefore, adversely affect
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting our Results of Operations—Weather and Seasonality,” included in Part II, Item 7 of this report, for additional information.
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We offer a comprehensive compensation and benefits package to attract and retain top talent.
−Removed: In addition to competitive base wages, additional benefits include annual bonus opportunities, share-based compensation, Company matched 401(k) plan, healthcare and insurance benefits, flexible spending accounts and paid time off.
+Added: In addition to competitive base wages, additional benefits include share-based compensation, Company matched 401(k) plan, healthcare and insurance benefits, flexible spending accounts and paid time off.
As of December 31, 2025, we employed 126 full-time individuals and 3 part-time employees.
−Removed: This represents an increase of sixteen employees, or 15% from December 31, 2023 due primarily to the hiring of additional employees throughout the organization as the company continues to grow.
+Added: This represents an overall increase of four employees, or 3% from December 31, 2024 due primarily to hiring additional employees for the newly acquired water systems from the City of Tucson.
Currently, none of our employees participate in collective bargaining agreements, and we consider our employee relations to be good.
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We maintain an internet website at www.gwresources.com.
−Removed: Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and proxy statements are accessible through our website, free of charge, as soon as reasonably practicable after these reports are filed electronically with, or furnished to, the SEC.
−Removed: To access these reports, go to our website at www.gwresources.com .
+Added: We electronically file with the SEC our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), proxy statements and the reports filed pursuant to Section 16(a) of the Exchange Act.
+Added: Copies of these reports and proxy statements are accessible through our website, free of charge, as soon as reasonably practicable after these reports and proxy statements are filed electronically with, or furnished to, the SEC.
+Added: To access these reports and proxy statements, go to our website at www.gwresources.com.
The foregoing information regarding our website is provided for convenience and the content of our website is not deemed to be incorporated by reference in this report filed with the SEC.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.