EXHIBIT 11 PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE - ---------------------------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, -------------------- ------------------------ (in millions, except per share amounts) 1998 1997 1998 1997 - ---------------------------------------------------------------------------------------------- EARNINGS PER COMMON SHARE (EPS) AS SHOWN IN THE STATEMENT OF CONSOLIDATED INCOME Earnings available for common stock $ 174 $ 193 $ 313 $ 365 ========== ========== ========== ========== Average common shares outstanding 382 398 382 403 ========== ========== ========== ========== Basic EPS $ 0.46 $ 0.49 $ 0.82 $ 0.91 ========== ========== ========== ========== DILUTED EPS (1) Earnings available for common stock $ 174 $ 193 $ 313 $ 365 ========== ========== ========== ========== Average common shares outstanding 382 398 382 403 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) 1 - 1 - ---------- ---------- ---------- ---------- Average common shares outstanding as adjusted 383 398 383 403 ========== ========== ========== ========== Diluted EPS $ 0.46 $ 0.49 $ 0.82 $ 0.91 ========== ========== ========== ========== - ---------------------------------------------------------------------------------------------- <FN> (1) This presentation is submitted in accordance with Statement of Financial Accounting Standards No. 128.