Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
(in millions, except per share amounts)	2012		2011		2012		2011
Income available for common shareholders	$	361	$	200	$	829	$	761
Weighted average common shares outstanding, basic		428		403		422		399
Add incremental shares from assumed conversions:
Employee share-based compensation		1		1		1		1
Weighted average common shares outstanding, diluted		429		404		423		400
Total earnings per common share, diluted	$	0.84	$	0.50	$	1.96	$	1.90

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