EXHIBIT 11 PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE - -------------------------------------------------------------------------------- Three Months Ended March 31, --------------------------------- (in millions, except per share amounts) 2000 2001 - -------------------------------------------------------------------------------- EARNINGS (LOSS) PER COMMON SHARE, BASIC (1) Earnings available for common stock $ (951) $280 ====== ==== Weighted average common shares outstanding (2) 363 361 ====== ==== Earnings (Loss) per common share, basic $(2.62) $.78 ====== ==== EARNINGS (LOSS) PER COMMON SHARE, DILUTED (1) Earnings available for common stock $ (951) $280 ====== ==== Weighted average common shares outstanding (2) 363 361 Add: outstanding options, reduced by the number of shares that could be repurchased with the proceeds from such exercise (at average market price) (3) - 1 Add: shares held by trust for satisfaction of phantom stock held by employee under deferred compensation plan - - ------ ---- Shares outstanding for diluted calculation 363 362 ====== ==== Earnings (Loss) per common share, diluted $(2.62) $.77 ====== ==== - -------------------------------------------------------------------------------- (1) This presentation is submitted in accordance with Item 601(b)(11) of Regulation S-K and Statement of Financial Accounting Standards No. 128. (2) Average common shares outstanding exclude shares held by a subsidiary of PG&E Corporation (23,815,500 shares at March 31, 2000 and 2001, respectively) and shares held by the Company to secure deferred compensation obligations (281,985 shares at March 31, 2000 and 2001, respectively). (3) The diluted share base for 2001 excludes approximately 457 million in incremental shares due to the antidilution effects of the net loss.