What Global Water Resources, Inc. told the SEC could break it.

All of Global Water's regulated-utility customers are in Arizona, with 81.9% of active service connections in the City of Maricopa, so it cannot diversify away from local regulatory, economic, demographic and weather conditions in that area.

“The customers of our regulated utilities are currently located exclusively in the state of Arizona and 81.9% of our active service connections are located in the City of Maricopa, Arizona.”

Substantially all of Global Water's revenue comes from ACC-approved tariff rates, making earnings dependent on rate-case outcomes; it is also subject to the Safe Drinking Water Act, Clean Water Act (EPA) and Arizona ADEQ aquifer-protection rules.

“Operating revenue is substantially derived from regulated water, wastewater, and recycled water service provided to customers based upon tariff rates approved by the ACC.”

Some chemicals Global Water uses to treat water and wastewater are available only from a single or limited number of sources, with no assurance of continued supply at needed quantity/quality/timing, and replacing a supplier could cause delays and cost increases.

“Also, some chemicals are available from a single source or a limited number of sources. There is no assurance that these suppliers will continue to produce the chemicals in the quantities and quality and at the times they are needed.”

Global Water depends on adequate water supply (largely pumped groundwater recharged by rainfall/snowpack, with limited surface-water rights and reliance on possible future Colorado River supplies); drought and recharge shortfalls could constrain its ability to serve customers.

“We depend on an adequate water supply to meet the present and future needs of our customers. Whether we have an adequate water supply depends upon a variety of factors, including underground water supply from which groundwater is pumped, the rate at which it is recharged by rainfall and snowpack and ch”