Business: H2O America Equity Units, stated amount $50 per unit, initially consisting of Corporate Unit Units which include a stock purchase contract and a 1/20 undivided beneficial ownership interest in $1,000 principal amount of H2O America 5.300% Remarketable Senior Notes due 2031 with a principal amount of $50.

The stock purchase contract requires the holder to purchase for $50 a variable number of shares of H2O America (NGS:HTO) common stock no later than 11/01/2029 and pays a contract adjustment rate of 2.450% per annum. The stock purchase settlement rate will be 0.7265 shares per unit if the then current market price is equal to or greater than $68.8231 and 0.8537 shares per unit if the market price is equal to or less than $58.5686. For market prices between those values the settlement rate will be $50 divided by the market value. Prior to the IPO of this security, the last reported sale price of the common stock on (__) was $(__) per share. The stock purchase contract may be settled any time at the holder’s option and the company will deliver 0.7265 shares of common stock for each purchase contract.

The H2O America 5.300% Remarketable Senior Notes due 2031 is due 11/01/2031 and is subject to reset and remarketing on the third business day prior to The ownership interest H2O America 5.300% Remarketable Senior Notes due 2031 are pledged as collateral to secure the holder's obligations under the stock purchase contract.

The Corporate Units pay quarterly distributions of 7.750% ($3.875 per annum on 2/1, 5/1 8/1 & 11/1) to holders of record on the record date which is one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is the record date).

Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.

The holder has the right at any time to convert the Corporate Units to Treasury Units by the substitution of a specified zero-coupon U.S. Treasury security for the H2O America 5.300% Remarketable Senior Notes due 2031 in lots of 20 and to later recreate Corporate Units.

This security was NOT rated by Moody’s and rated BBB by S&P at the date of its IPO. The are unsecured and rank equally with the company's other unsecured senior indebtedness. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.