EXHIBIT 11 PG&E CORPORATION COMPUTATION OF EARNINGS PER COMMON SHARE - -------------------------------------------------------------------------------------------------------------------- Year ended December 31, ---------------------------------------- (in thousands, except per share amounts) 1998 1997 1996 - -------------------------------------------------------------------------------------------------------------------- EARNINGS PER COMMON SHARE (EPS) AS SHOWN IN THE STATEMENT OF CONSOLIDATED INCOME Earnings available for common stock $ 719,488 $ 715,940 $ 722,096 ========== ========== ========== Average common shares outstanding 381,907 410,040 412,542 ========== ========== ========== Basic EPS $ 1.88 $ 1.75 $ 1.75 ========== ========== ========== DILUTED EPS (1) Earnings available for common stock $ 719,488 $ 715,940 $ 722,096 ========== ========== ========== Average common shares outstanding 381,907 410,040 412,542 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) 1,198 211 9 ---------- ---------- ---------- Average common shares outstanding as adjusted 383,106 410,251 412,551 ========== ========== ========== Diluted EPS $ 1.88 $ 1.75 $ 1.75 ========== ========== ========== - ------------------------------------------------------------------------------- (1) This presentation is submitted in accordance with Statement of Financial Accounting Standards No. 128.