EXHIBIT 11

PG&E CORPORATION

COMPUTATION OF EARNINGS PER COMMON SHARE

	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30,				June 30,
	2008		2007		2008		2007
Net income	$	293	$	269	$	517	$	525
Less: distributed earnings to common shareholders		139		127		278		253
Undistributed earnings	$	154	$	142	$	239	$	272
Common shareholders earnings
Basic
Distributed earnings to common shareholders	$	139	$	127	$	278	$	253
Undistributed earnings allocated to common shareholders		146		135		227		258
Total common shareholders earnings, basic	$	285	$	262	$	505	$	511
Diluted
Distributed earnings to common shareholders	$	139	$	127	$	278	$	253
Undistributed earnings allocated to common shareholders		146		135		227		258
Total common shareholders earnings, diluted	$	285	$	262	$	505	$	511
Weighted average common shares outstanding, basic		356		350		355		350
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, basic		375		369		374		369
Weighted average common shares outstanding, basic		356		350		355		350
Employee share-based compensation		1		2		1		2
Weighted average common shares outstanding, diluted		357		352		356		352
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, diluted		376		371		375		371
Net earnings per common share, basic
Distributed earnings, basic (1)	$	0.39	$	0.36	$	0.78	$	0.72
Undistributed earnings, basic		0.41		0.39		0.64		0.74
Total	$	0.80	$	0.75	$	1.42	$	1.46
Net earnings per common share, diluted
Distributed earnings, diluted	$	0.39	$	0.36	$	0.78	$	0.72
Undistributed earnings, diluted		0.41		0.38		0.64		0.73
Total	$	0.80	$	0.74	$	1.42	$	1.45
(1) Distributed earnings, basic may differ from actual per share amounts paid as dividends, as the EPS computation under GAAP requires the use of the weighted average, rather than the actual number of, shares outstanding.