EXHIBIT 11

PG&E CORPORATION

COMPUTATION OF EARNINGS PER COMMON SHARE

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(in millions, except share amounts)			2005		2004		2005		2004
Net income		$	267	$	372	$	485	$	3,405
Less: distributed earnings to common shareholders			112		-		223		-
Undistributed earnings			155		372		262		3,405
Common shareholders earnings
Basic
Distributed earnings to common shareholders		$	112	$	-	$	223	$	-
Undistributed earnings allocated to common shareholders			147		355		249		3,249
Total common shareholders earnings, basic		$	259	$	355	$	472	$	3,249
Diluted
Distributed earnings to common shareholders		$	112	$	-	$	223	$	-
Undistributed earnings allocated to common shareholders			148		356		250		3,252
Total common shareholders earnings, diluted		$	260	$	356	$	473	$	3,252
Weighted average common shares outstanding, basic			370		397		379		395
9.50% Convertible Subordinated Notes			19		19		19		19
Weighted average common shares outstanding and participating securities, basic			389		416		398		414
Weighted average common shares outstanding, basic			370		397		379		395
Employee stock compensation, restricted stock, accelerated share repurchase agreement and PG&E Corporation shares held by grantor trusts			5		7		5		7
PG&E Corporation warrants			-		2		-		3
Rounding			(1)		-		(1)		-
Weighted average common shares outstanding, diluted (1)			374		406		383		405
9.50% Convertible Subordinated Notes			19		19		19		19
Weighted average common shares outstanding and participating securities, diluted			393		425		402		424
Net earnings per common share, basic
Distributed earnings, basic		$	0.30	$	-	$	0.59	$	-
Undistributed earnings, basic			0.40		0.89		0.66		8.22
Total		$	0.70	$	0.89	$	1.25	$	8.22
Net earnings per common share, diluted
Distributed earnings, diluted		$	0.30	$	-	$	0.58	$	-
Undistributed earnings, diluted			0.40		0.88		0.65		8.03
Total		$	0.70	$	0.88	$	1.23	$	8.03
(1)	Options to purchase 6,500 PG&E Corporation common shares were outstanding during the three and six months ended June 30, 2005 and, 8,235,055 and 7,874,615 for the three and six months ended June 30, 2004, respectively, but not included in the computation of diluted earnings per common share because the option exercise prices were greater than the average market price.