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EXHIBIT 11

PG&E CORPORATION

 COMPUTATION OF EARNINGS PER COMMON SHARE

	Year Ended December 31,
	2008		2007		2006
(in millions, except per share amounts)
Net Income	$	1,338	$	1,006	$	991
Less: distributed earnings to common shareholders		560		508		460
Undistributed earnings		778		498		531
Less: undistributed earnings from discontinued operations		154		-		-
Undistributed earnings from continuing operations	$	624	$	498	$	531
Common shareholder earnings
Basic
Distributed earnings to common shareholders	$	560	$	508	$	460
Undistributed earnings allocated to common shareholders – continuing operations		592		472		503
Undistributed earnings allocated to common shareholders – discontinued operations		146		-		-
Total common shareholders earnings, basic	$	1,298	$	980	$	963
Diluted
Distributed earnings to common shareholders	$	560	$	508	$	460
Undistributed earnings allocated to common shareholders – continuing operations		593		473		504
Undistributed earnings allocated to common shareholders – discontinued operations		146		-		-
Total common shareholders earnings, diluted	$	1,299	$	981	$	964
Weighted average common shares outstanding, basic		357		351		346
9.50% Convertible Subordinated Notes		19		19		19
Weighted average common shares outstanding and participating securities, basic		376		370		365
Weighted average common shares outstanding, basic		357		351		346
Employee share-based compensation and accelerated share repurchases (1)		1		2		3
Weighted average common shares outstanding, diluted		358		353		349
9.50% Convertible Subordinated Notes		19		19		19
Weighted average common shares outstanding and participating securities, diluted		377		372		368
Net earnings per common share, basic
Distributed earnings, basic (2)	$	1.57	$	1.45	$	1.33
Undistributed earnings – continuing operations, basic		1.66		1.34		1.45
Undistributed earnings – discontinued operations, basic		0.41		-		-
Total	$	3.64	$	2.79	$	2.78
Net earnings per common share, diluted
Distributed earnings, diluted	$	1.56	$	1.44	$	1.32
Undistributed earnings – continuing operations, diluted		1.66		1.34		1.44
Undistributed earnings – discontinued operations, diluted		0.41		-		-
Total	$	3.63	$	2.78	$	2.76

(1) Includes approximately one million shares of PG&E Corporation common stock treated as outstanding in connection with accelerated share repurchase agreements (ASRs) for 2006.  The remaining shares of approximately two million at December 31, 2006 relate to share-based compensation and are deemed to be outstanding under SFAS No. 128 for the purpose of calculating EPS.  PG&E Corporation has no remaining obligation under these ASRs as of December 31, 2007.

(2) “Distributed earnings, basic” differs 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.