EXHIBIT 11 PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE - ----------------------------------------------------------------------------------------- Three Months Ended March 31, ---------------------------------- (in millions, except per share amounts) 1999 1998 - ----------------------------------------------------------------------------------------- BASIC EARNINGS PER SHARE (EPS) (1) Earnings available for common stock $ 156 $ 139 ======== ======== Average common shares outstanding 373 381 ======== ======== Basic EPS $ 42 $ 36 ======== ======== DILUTED EARNINGS PER SHARE (EPS) (1) Earnings available for common stock $ 156 $ 139 Less: assumed cash settlement of forward contract that may be settled in Company stock or cash 19 - -------- -------- Earnings available for common stock as adjusted 137 139 ======== ======== Average common shares outstanding 373 381 Add: outstanding options, reduced by the number of shares that could be repurchased with the proceeds from such exercise (at average market price) 2 1 -------- -------- Average common shares outstanding as adjusted 375 382 ======== ======== Diluted EPS $ .37 $ .36 ======== ======== - ----------------------------------------------------------------------------------------- <FN> (1) This presentation is submitted in accordance with Item 601(b)(11) of Regulation S-K and Statement of Financial Accounting Standards No. 128.