Pacific Gas & Electric (PCG+A) 10-Q 2007 Q3 Quarterly report

EXHIBIT 11

PG&E CORPORATION

COMPUTATION OF EARNINGS PER COMMON SHARE

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions, except per share amounts)	2007		2006		2007		2006
Net income	$	278	$	393	$	803	$	839
Less: distributed earnings to common shareholders		127		115		379		344
Undistributed earnings	$	151	$	278	$	424	$	495
Common shareholders earnings
Basic
Distributed earnings to common shareholders	$	127	$	115	$	379	$	344
Undistributed earnings allocated to common shareholders		143		264		402		469
Total common shareholders earnings, basic	$	270	$	379	$	781	$	813
Diluted
Distributed earnings to common shareholders	$	127	$	115	$	379	$	344
Undistributed earnings allocated to common shareholders		143		264		402		469
Total common shareholders earnings, diluted	$	270	$	379	$	781	$	813
Weighted average common shares outstanding, basic		352		347		350		345
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, basic		371		366		369		364
Weighted average common shares outstanding, basic		352		347		350		345
Employee share-based compensation and accelerated share repurchase program (1)		1		2		2		4
Weighted average common shares outstanding, diluted		353		349		352		349
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, diluted		372		368		371		368
Net earnings per common share, basic
Distributed earnings, basic (2)	$	0.36	$	0.33	$	1.08	$	1.00
Undistributed earnings, basic		0.41		0.76		1.15		1.36
Total	$	0.77	$	1.09	$	2.23	$	2.36
Net earnings per common share, diluted
Distributed earnings, diluted	$	0.36	$	0.33	$	1.08	$	0.99
Undistributed earnings, diluted		0.41		0.76		1.14		1.34
Total	$	0.77	$	1.09	$	2.22	$	2.33
(1) Includes approximately 1 million shares of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchases for the nine months ended September 30, 2006. The remaining shares relate to share-based compensation and are deemed to be outstanding under SFAS No. 128 for the purpose of calculating EPS.
(2)“Distributed earnings, basic” may differ from actual per share amounts paid as dividends, as the EPS computation under GAAP requires the use of the weighted average number of shares outstanding rather than the actual number.