Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

NOTE 6: EARNINGS PER SHARE

PG&E Corporation’s basic earnings per common share (“EPS”) is calculated by dividing the income available for common shareholders by the weighted average number of common shares outstanding. PG&E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding share-based compensation in the calculation of diluted EPS. The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS:

	Three Months Ended       June 30,				Six Months Ended       June 30,
(in millions, except per share amounts)	2012		2011		2012		2011
Income available for common shareholders		$ 235		$ 362		$ 468		$ 561
Weighted average common shares outstanding, basic		423		399		419		397
Add incremental shares from assumed conversions:
Employee share-based compensation		2		1		2		2
Weighted average common shares outstanding, diluted		425		400		421		399
Total earnings per common share, diluted		$ 0.55		$ 0.91		$ 1.11		$ 1.41

For each of the periods presented above, options and securities that were antidilutive were immaterial.