Arizona Agency Applauds Water Company's Acquisition
"This acquisition is the first of what will be a series of 'wins' for rural water customers," said Commissioner Andy Tobin, chairman of the Commission's Water Committee. "Consolidations like this will often be the only solution for some companies that simply cannot deal with the infrastructure problems which put their customers' service and health at risk. There is still much work to be done."
The Arizona Corporation Commission said May 30 it is pleased to announce Global Water Resources, Inc. has acquired Eagletail Water Company, LLC, a small water company west of Phoenix. "Eagletail Water Company faced a long history of challenges and was struggling financially as the company was being run by customer volunteers. Global’s acquisition adds approximately 50 active water connections and six square miles of service area to Global Water’s existing regional service area near Tonapah," according to the agency.
Its announcement said Global Water Company CEO Ron Fleming credited the commission's newly adopted water policies in facilitating the transaction to close quickly with fewer regulatory burdens. The commission has created new policies in the past year, including guidelines for the acquisition of small, troubled water companies by larger, viable companies to improve reliability and potentially reduce rates. The Eagletail Water deal is the first acquisition since the policies were approved.
"This acquisition is the first of what will be a series of 'wins' for rural water customers," said Commissioner Andy Tobin, chairman of the Commission's Water Committee. "Consolidations like this will often be the only solution for some companies that simply cannot deal with the infrastructure problems which put their customers' service and health at risk. There is still much work to be done."
The commission also recently adopted policies to provide more efficient processing of rate cases and created new mechanisms for companies and customers to rely on in emergencies, including the creation of a Small Water Ombudsman Office.