EXHIBIT 11 			 PACIFIC GAS AND ELECTRIC COMPANY 			 COMPUTATION OF EARNINGS PER COMMON SHARE 					 (unaudited) - -------------------------------------------------------------------------------------------- 						 Three months ended Nine months ended 							September 30, September 30, 						-------------------- -------------------- (in thousands, except per share amounts) 1994 1993 1994 1993 - -------------------------------------------------------------------------------------------- EARNINGS PER COMMON SHARE (EPS) AS SHOWN IN THE STATEMENT OF CONSOLIDATED INCOME Net income $425,633 $356,099 $903,950 $857,113 Less preferred dividends 14,494 15,520 43,314 48,913 Net income for calculating EPS for -------- -------- -------- -------- Statement of Consolidated Income $411,139 $340,579 $860,636 $808,200 						======== ======== ======== ======== Average common shares outstanding 430,439 432,472 429,584 430,527 						======== ======== ======== ======== EPS as shown in the Statement of Consolidated Income $ .96 $ .79 $ 2.00 $ 1.88 						======== ======== ======== ======== PRIMARY EPS (1) Net income $425,633 $356,099 $903,950 $857,113 Less preferred dividends 14,494 15,520 43,314 48,913 						-------- -------- -------- -------- Net income for calculating primary EPS $411,139 $340,579 $860,636 $808,200 						======== ======== ======== ======== Average common shares outstanding 430,439 432,472 429,584 430,527 Add exercise of options, reduced by the number of shares that could have been purchased with the proceeds from such exercise (at average market price) 443 1,895 572 1,544 						-------- -------- -------- -------- Average common shares outstanding as adjusted 430,882 434,367 430,156 432,071 						======== ======== ======== ======== Primary EPS $ .95 $ .78 $ 2.00 $ 1.87 						======== ======== ======== ======== FULLY DILUTED EPS (1) Net income $425,633 $356,099 $903,950 $857,113 Less preferred dividends 14,494 15,520 43,314 48,913 						-------- -------- -------- -------- Net income for calculating fully diluted EPS $411,139 $340,579 $860,636 $808,200 						======== ======== ======== ======== Average common shares outstanding 430,439 432,472 429,584 430,527 Add exercise of options, reduced by the number of shares that could have been purchased with the proceeds from such exercise (at the greater of average or ending market price) 443 1,985 572 1,985 						-------- -------- -------- -------- Average common shares outstanding as adjusted 430,882 434,457 430,156 432,512 						======== ======== ======== ======== Fully diluted EPS $ .95 $ .78 $ 2.00 $ 1.87 						======== ======== ======== ======== - -------------------------------------------------------------------------------------------- <F/N> (1) This presentation is submitted in accordance with Item 601(b)(11) of Regulation S-K. This presentation is not required by APB Opinion No. 15, because it results in dilution of less than 3%.