Global Water Resources Acquires Seven Water Systems from Tucson Water, Adding 2,200 Customer Connections – GlobeNewswire

Report on Global Water Resources’ Acquisition and Alignment with Sustainable Development Goals

Executive Summary

Global Water Resources, Inc. has finalized the acquisition of seven water systems from Tucson Water, expanding its service footprint in Pima County, Arizona. This strategic consolidation is projected to generate approximately $1.5 million in annual revenue. The integration and modernization of these systems directly support key United Nations Sustainable Development Goals (SDGs), particularly in the areas of clean water, resilient infrastructure, sustainable communities, and responsible consumption. The company’s approach emphasizes technology deployment and its established Total Water Management (TWM) model to enhance water security and conservation in a water-scarce region.

Acquisition Details

• Acquiring Entity: Global Water Resources, Inc. (NASDAQ: GWRS)
• Selling Entity: Tucson Water, City of Tucson
• Assets: Seven water systems located in Pima County.
• Valuation: Acquired at a value equivalent to approximately 1.05 times the current rate base of $7.7 million.
• Customer Base Expansion: The acquisition adds approximately 2,200 water service connections, increasing Global Water’s total in Pima County to approximately 7,200.

Strategic Alignment with Sustainable Development Goals (SDGs)

The acquisition and subsequent operational plans demonstrate a strong commitment to advancing several UN SDGs.

SDG 6: Clean Water and Sanitation

Actions directly contribute to ensuring the availability and sustainable management of water.

• Ensuring Access: Guarantees continued, professionally managed water service for approximately 2,200 connections.
• Water Recycling: Leverages the company’s TWM model, which recycles over 1 billion gallons of water annually, maximizing the use of every drop and reducing strain on primary water sources.
• Sustainable Management: Consolidates smaller, disparate systems into a unified, efficient operational platform, enhancing service reliability and the long-term sustainability of water resources.

SDG 9: Industry, Innovation, and Infrastructure

The project focuses on building resilient infrastructure and fostering innovation in water management.

• Infrastructure Modernization: Global Water plans significant capital improvements to modernize the acquired systems.
• Technological Innovation: A key initiative is the deployment of Automated Meter Infrastructure (AMI) and smart meters, upgrading customer connections with advanced technology for wireless usage metering.
• Building Resilience: These technological and operational upgrades create more resilient water systems capable of supporting communities in arid, high-growth regions.

SDG 11: Sustainable Cities and Communities

The initiative supports the development of inclusive, safe, and sustainable communities.

• Supporting Urban Growth: By ensuring efficient and reliable water management in growth corridors around Tucson, the company supports sustainable community development.
• Operational Efficiency: The geographic proximity of the acquired systems to existing company hubs allows for seamless integration, more efficient management, and enhanced service reliability for residents.
• Long-Term Planning: The application of advanced public asset management strategies contributes to the long-term viability and sustainability of essential public services.

SDG 12: Responsible Consumption and Production

The company’s strategy actively promotes sustainable consumption patterns for water.

• Promoting Conservation: Smart meter technology empowers customers with data to monitor usage, identify leaks, and make informed decisions to conserve water.
• Incentivizing Efficiency: The company plans to develop rate structures that incentivize conservation, directly encouraging responsible water consumption.
• Circular Economy Approach: The TWM model’s emphasis on reusing water embodies a circular approach to resource management, moving away from a linear model of consumption and disposal.

Future Operational Plan

1. Integrate the seven acquired water systems into the company’s existing platform to leverage geographic and operational efficiencies.
2. Deploy Automated Meter Infrastructure (AMI) and upgrade customer connections with smart meters to enhance data collection and promote conservation.
3. Implement planned capital improvements to modernize the systems, supporting higher quality service and reliability.
4. Adopt Tucson Water’s rates for the acquired systems, including a previously approved five percent rate increase scheduled for July 2026, while developing a broader rate case strategy for the future.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 6: Clean Water and Sanitation

  This goal is central to the article, as it discusses the acquisition and management of water systems. The core business of Global Water Resources, Inc. is providing water, wastewater, and recycled water services. The article emphasizes providing “reliable water service,” improving “water quality,” and implementing “effective water management,” which are all key components of SDG 6.

• SDG 9: Industry, Innovation, and Infrastructure

  The article highlights the company’s plans to “modernize the acquired water systems” by installing “automated meter infrastructure (AMI)” and “upgrading customer connections with smart meters.” This focus on upgrading infrastructure with advanced technology directly relates to SDG 9’s aim to build resilient infrastructure and foster innovation.

• SDG 11: Sustainable Cities and Communities

  The acquisition is framed as a benefit to “Arizona communities.” By consolidating and improving water systems in growth corridors around Phoenix and Tucson, the company contributes to making these communities more sustainable. The article mentions that its management approach “helps protect water supplies in water-scarce areas experiencing population growth,” which is crucial for sustainable urban development.

• SDG 12: Responsible Consumption and Production

  The article details efforts to promote water conservation. The implementation of smart meters, rate structures that “incentivize conservation,” and the company’s “Total Water Management (TWM)” approach, which involves recycling “over 1 billion gallons of water annually,” all align with the goal of ensuring sustainable consumption and production patterns through the efficient use of natural resources.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 6: Clean Water and Sanitation

   • Target 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all. The article addresses this by discussing the acquisition of systems to provide “reliable water service” to approximately 2,200 new service connections.
   • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. This is addressed through plans to install smart meters, implement rate structures to “incentivize conservation,” and use a “Total Water Management (TWM)” approach to maximize water use.
   • Target 6.5: By 2030, implement integrated water resources management at all levels. The company’s “Total Water Management (TWM)” is described as an “integrated approach to managing the entire water cycle,” which directly reflects this target.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The company’s acquisition and planned capital improvements aim to provide “higher quality water services” and “reliable water service.”
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The plan to “modernize the acquired water systems with the installation of an automated meter infrastructure (AMI)” and “smart meters” is a direct example of upgrading infrastructure with efficient technology.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums. The provision of “reliable water service” is a fundamental basic service for communities, and the article details the expansion of these services to 2,200 connections in Pima County.

4. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The company’s water recycling program (“recycles over 1 billion gallons of water annually”) and its TWM approach that “helps protect water supplies in water-scarce areas” are direct actions toward this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains several specific metrics and actions that can serve as indicators:

• For Target 6.1 & 11.1: The number of water service connections is a clear indicator of access. The article specifies the acquisition adds “approximately 2,200 water service connections,” bringing the total in Pima County to “approximately 7,200.”
• For Target 6.4 & 9.4: The deployment of technology is a key indicator. The article mentions the plan to install “automated meter infrastructure (AMI)” and “smart meters,” with a benchmark of having already deployed this technology for “more than 95% of its existing water connections.” This percentage serves as a measurable indicator of progress.
• For Target 6.4 & 12.2: The implementation of conservation-focused policies is an indicator. The article states the company’s strategy is to “implement appropriate rate structures that incentivize conservation.”
• For Target 6.5: The adoption of an integrated management model is an indicator. The article explicitly names the “Total Water Management (TWM)” model as the company’s “integrated approach.”
• For Target 12.2: The volume of recycled water is a direct quantitative indicator. The article states that Global Water “recycles over 1 billion gallons of water annually.”

4. Table of SDGs, Targets, and Indicators

Source: globenewswire.com