EXHIBIT 11
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF EARNINGS PER COMMON SHARE
(unaudited)
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Three months ended Six months ended
June 30, June 30,
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(in thousands, except per share amounts) 1996 1995 1996 1995
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EARNINGS PER COMMON SHARE (EPS) AS SHOWN
IN THE STATEMENT OF CONSOLIDATED INCOME
Net income $111,780 $405,520 $372,484 $734,207
Less: preferred dividend requirement and
redemption premium 8,278 14,494 16,556 28,988
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Net income for calculating EPS for
Statement of Consolidated Income $103,502 $391,026 $355,928 $705,219
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Average common shares outstanding 415,125 426,621 414,738 428,344
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EPS as shown in the Statement of
Consolidated Income $ .25 $ .92 $ .86 $ 1.65
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PRIMARY EPS (1)
Net income $111,780 $405,520 $372,484 $734,207
Less: preferred dividend requirement and
redemption premium 8,278 14,494 16,556 28,988
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Net income for calculating primary EPS $103,502 $391,026 $355,928 $705,219
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Average common shares outstanding 415,125 426,621 414,738 428,344
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) 8 133 20 88
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Average common shares outstanding as
adjusted 415,133 426,754 414,758 428,432
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Primary EPS $ .25 $ .92 $ .86 $ 1.65
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FULLY DILUTED EPS (1)
Net income $111,780 $405,520 $372,484 $734,207
Less: preferred dividend requirement and
redemption premium 8,278 14,494 16,556 28,988
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Net income for calculating fully diluted EPS $103,502 $391,026 $355,928 $705,219
======== ======== ======== ========
Average common shares outstanding 415,125 426,621 414,738 428,344
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) 9 184 20 184
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Average common shares outstanding as
adjusted 415,134 426,805 414,758 428,528
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Fully diluted EPS $ .25 $ .92 $ .86 $ 1.65
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<FN>
(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%.