EXHIBIT 11

PG&E CORPORATION

COMPUTATION OF EARNINGS PER COMMON SHARE

	Three Months Ended				Nine Months Ended
(in millions, except per share amounts)	September 30,				September 30,
	2008		2007		2008		2007
Net income	$	304	$	278	$	821	$	803
Less: distributed earnings to common shareholders		140		127		419		379
Undistributed earnings	$	164	$	151	$	402	$	424
Common shareholders earnings
Basic
Distributed earnings to common shareholders	$	140	$	127	$	419	$	379
Undistributed earnings allocated to common shareholders		156		143		382		402
Total common shareholders earnings, basic	$	296	$	270	$	801	$	781
Diluted
Distributed earnings to common shareholders	$	140	$	127	$	419	$	379
Undistributed earnings allocated to common shareholders		156		143		382		402
Total common shareholders earnings, diluted	$	296	$	270	$	801	$	781
Weighted average common shares outstanding, basic		357		352		356		350
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, basic		376		371		375		369
Weighted average common shares outstanding, basic		357		352		356		350
Employee share-based compensation		1		1		1		2
Weighted average common shares outstanding, diluted		358		353		357		352
9.50% Convertible Subordinated Notes		19		19		19		19
Weighted average common shares outstanding and participating securities, diluted		377		372		376		371
Net earnings per common share, basic
Distributed earnings, basic (1)	$	0.39	$	0.36	$	1.18	$	1.08
Undistributed earnings, basic		0.44		0.41		1.07		1.15
Total	$	0.83	$	0.77	$	2.25	$	2.23
Net earnings per common share, diluted
Distributed earnings, diluted	$	0.39	$	0.36	$	1.17	$	1.08
Undistributed earnings, diluted		0.44		0.41		1.07		1.14
Total	$	0.83	$	0.77	$	2.24	$	2.22
(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.