EXHIBIT 11
PACIFIC GAS AND ELECTRIC COMPANY
COMPUTATION OF EARNINGS PER COMMON SHARE
(unaudited)
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Three months ended Nine months ended
September 30, September 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 $233,695 $377,593 $606,179 $1,111,800
Less: preferred dividend requirement and
redemption premium 8,279 15,901 24,835 44,889
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Net income for calculating EPS for
Statement of Consolidated Income $225,416 $361,692 $581,344 $1,066,911
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Average common shares outstanding 411,759 421,578 413,738 426,064
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EPS as shown in the Statement of
Consolidated Income $ .55 $ .85 $ 1.41 $ 2.50
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PRIMARY EPS (1)
Net income $233,695 $377,593 $606,179 $1,111,800
Less: preferred dividend requirement and
redemption premium 8,279 15,901 24,835 44,889
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Net income for calculating primary EPS $225,416 $361,692 $581,344 $1,066,911
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Average common shares outstanding 411,759 421,578 413,738 $ 426,064
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) 4 179 10 117
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Average common shares outstanding as
adjusted 411,763 421,757 413,748 426,181
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Primary EPS $ .55 $ .85 $ 1.41 $ 2.50
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FULLY DILUTED EPS (1)
Net income $233,695 $377,593 $606,179 $1,111,800
Less: preferred dividend requirement and
redemption premium 8,279 15,901 24,835 44,889
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Net income for calculating fully diluted EPS $225,416 $361,692 $581,344 $1,066,911
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Average common shares outstanding 411,759 421,578 413,738 426,064
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) 4 204 10 204
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Average common shares outstanding as
adjusted 411,763 421,782 413,748 426,268
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Fully diluted EPS $ .55 $ .85 $ 1.41 $ 2.50
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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%.