EXHIBIT 11
PG&E CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
| Three Months Ended | ||||||||
March 31, | ||||||||
| (in millions, except share amounts) | 2008 | 2007 | ||||||
| Net income | $ | 224 | $ | 256 | ||||
| Less: distributed earnings to common shareholders | 139 | 126 | ||||||
| Undistributed earnings | $ | 85 | $ | 130 | ||||
| Common shareholders earnings | ||||||||
| Basic | ||||||||
| Distributed earnings to common shareholders | $ | 139 | $ | 126 | ||||
| Undistributed earnings allocated to common shareholders | 81 | 123 | ||||||
| Total common shareholders earnings, basic | $ | 220 | $ | 249 | ||||
| Diluted | ||||||||
| Distributed earnings to common shareholders | $ | 139 | $ | 126 | ||||
| Undistributed earnings allocated to common shareholders | 81 | 123 | ||||||
| Total common shareholders earnings, diluted | $ | 220 | $ | 249 | ||||
| Weighted average common shares outstanding, basic | 355 | 349 | ||||||
| 9.50% Convertible Subordinated Notes | 19 | 19 | ||||||
| Weighted average common shares outstanding and participating securities, basic | 374 | 368 | ||||||
| Weighted average common shares outstanding, basic | 355 | 349 | ||||||
| Employee share-based compensation | 1 | 2 | ||||||
| Weighted average common shares outstanding, diluted | 356 | 351 | ||||||
| 9.50% Convertible Subordinated Notes | 19 | 19 | ||||||
| Weighted average common shares outstanding and participating securities, diluted | 375 | 370 | ||||||
| Net earnings per common share, basic | ||||||||
Distributed earnings, basic(1) | $ | 0.39 | $ | 0.36 | ||||
| Undistributed earnings, basic | 0.23 | 0.35 | ||||||
| Total | $ | 0.62 | $ | 0.71 | ||||
| Net earnings per common share, diluted | ||||||||
| Distributed earnings, diluted | $ | 0.39 | $ | 0.36 | ||||
| Undistributed earnings, diluted | 0.23 | 0.35 | ||||||
| Total | $ | 0.62 | $ | 0.71 | ||||
(1) 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, rather than the actual number of, shares outstanding. | ||||||||