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SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;The following table provides the per share computations for &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;our earnings&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; for the years ended December 31. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;Basic &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;e&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;arnings per common share (EPS) is calculated by dividing earnings applicable to common stock by the weighted-average number of common shares outstanding for the year. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top: 0pt; margin-bottom: 0pt;'&gt;&lt;/p&gt;&lt;div&gt;&lt;table style="border-collapse:collapse;margin-top:20px;"&gt;&lt;tr style="height: 19px"&gt;&lt;td colspan="7"  style="width: 698px; border-top-style:solid;border-top-width:1px;text-align:left;background-color:#C0C0C0;border-color:#000000;min-width:698px;"&gt;&lt;font style="FONT-WEIGHT: bold;FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;EARNINGS PER SHARE COMPUTATIONS&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 19px"&gt;&lt;td colspan="7"  style="width: 698px; text-align:left;background-color:#C0C0C0;border-color:#000000;min-width:698px;"&gt;&lt;font style="FONT-STYLE: italic;FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;(Dollars in millions, except per share amounts; shares in thousands)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 14px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&amp;#160;&lt;/td&gt;&lt;td colspan="6"  style="width: 291px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:291px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;Years ended December 31,&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 14px"&gt;&lt;td   style="width: 407px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:407px;"&gt;&amp;#160;&lt;/td&gt;&lt;td colspan="2"  style="width: 97px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2010&lt;/font&gt;&lt;/td&gt;&lt;td colspan="2"  style="width: 97px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2009&lt;/font&gt;&lt;/td&gt;&lt;td colspan="2"  style="width: 97px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:97px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2008&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt;Numerator:&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt;    Earnings/Income attributable to common shareholders&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 739&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 1,119&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 1,113&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt;Denominator:&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Weighted-average common shares outstanding for basic EPS&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 244,736&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 243,339&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 247,387&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Dilutive effect of stock options, restricted stock awards and&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;        restricted stock units   &lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 3,206&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4,045&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 3,772&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Weighted-average common shares outstanding for diluted EPS&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 247,942&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 247,384&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 251,159&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt;Earnings per share:&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 75px; text-align:left;border-color:#000000;min-width:75px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Basic&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 3.02&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4.60&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4.50&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 16px"&gt;&lt;td   style="width: 407px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:407px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt;    Diluted&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 2.98&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4.52&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:22px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"&gt;$&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 75px; border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4.43&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/div&gt;&lt;p style='margin-top: 0pt; margin-bottom: 0pt;'&gt;&lt;/p&gt;&lt;p style='margin-top:12pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;and&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; minus &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;tax shortfalls&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; are assumed to be used to repurchase shares on the open market at the average market price for the year. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the compensation expense on the stock options. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;The calculation excludes options for which the exercise price on common stock was greater than the average market price during the year. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;We had &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;2,&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;13&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;8,800&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;,&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;1&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;,504,250&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; and &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;1,496,500 &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;of &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;such &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;excluded &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;stock options outstanding during &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;2010&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;2009 and 2008&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, respectively. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;During 2010, &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;we had &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;9,900&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;stock options &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;outstanding that were antidilutive &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;because of the unearned compensation &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;and windfall tax benefits &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;included in the assumed proceeds under the treasury stock method. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;There were no such antidilutive stock options outstanding during 2009 or 2008.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;The dilution from unvested restricted stock awards and units is also based on the treasury stock method. Assumed proceeds equal to the unearned compensation and windfall tax benefits &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;and&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; minus&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; tax sh&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;ortfalls related to the awards &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;are assumed to be used to repurchase shares on the open market at the average market price for the year. The windfall tax benefits or tax shortfalls are the difference between tax deductions we would receive upon the assumed vesting of restricted stock awards and units and the deferred income taxes we recorded related to the compensation expense on the restricted stock awards and units.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; We had &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;1,009&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; restricted stock awards and units outstanding that were antidilutive during 200&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;8&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;. There were no such &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;anti-dilutive &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;restricted stock awards &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;or units &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;in&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; 20&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;10&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; or&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; 20&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;09&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top: 0pt; margin-bottom: 0pt;'&gt;&lt;/p&gt;&lt;p style='margin-top:12pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;We are authorized to issue 750,000,000 shares of no-par-value common stock. In addition, we are authorized to issue 50,000,000 shares of preferred stock having rights, preferences and privileges that would be established by the Sempra Energy board of directors at the time of issuance. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;Shares of common stock held by the ESOP were &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;504,440&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;868,173&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; and&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; 1,177,196&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;at December 31, 20&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;10&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, 200&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;9 &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;and 200&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;8&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, respectively. These shares are unallocated and therefore excluded from the computation of EPS.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;Excluding shares held by the ESOP, common stock activity consisted of the following:&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top: 0pt; margin-bottom: 0pt;'&gt;&lt;/p&gt;&lt;div&gt;&lt;table style="border-collapse:collapse;margin-top:20px;"&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="8"  style="width: 628px; border-top-style:solid;border-top-width:1px;text-align:left;background-color:#C0C0C0;border-color:#000000;min-width:628px;"&gt;&lt;font style="FONT-WEIGHT: bold;FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;COMMON STOCK ACTIVITY&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="8"  style="width: 628px; text-align:left;background-color:#C0C0C0;border-color:#000000;min-width:628px;"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 14px"&gt;&lt;td   style="width: 31px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:31px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 264px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:264px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2010&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2009&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: center;"&gt;2008&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;Common shares outstanding, January 1&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 246,507,865&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 243,324,281&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 261,214,009&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Savings plan issuance&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 560,600&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 1,021,023&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; &amp;#8213;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Shares released from ESOP&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 363,733&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 309,023&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 310,850&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Stock options exercised&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 912,725&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 1,835,184&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 683,858&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Restricted stock issuances&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; &amp;#8213;&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 37,233&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 4,002&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Common stock investment plan&lt;/font&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;(1)&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 217,772&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 381,167&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 1,508&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Shares repurchased&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (8,108,579)&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (396,046)&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (18,841,287)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 17px"&gt;&lt;td colspan="2"  style="width: 295px; text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;    Shares forfeited and other&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (6,700)&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (4,000)&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; (48,659)&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 18px"&gt;&lt;td colspan="2"  style="width: 295px; border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:295px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;Common shares outstanding, December 31&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 240,447,416&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 246,507,865&lt;/font&gt;&lt;/td&gt;&lt;td   style="width: 22px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:left;border-color:#000000;min-width:22px;"&gt;&amp;#160;&lt;/td&gt;&lt;td   style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"&gt;&lt;font style="FONT-FAMILY: Arial;FONT-SIZE: 9pt;COLOR: #000000;"&gt; 243,324,281&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr style="height: 18px"&gt;&lt;td   style="width: 31px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:31px;"&gt;&lt;font style="FONT-STYLE: italic;FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;(1)&lt;/font&gt;&lt;/td&gt;&lt;td colspan="7"  style="width: 597px; border-top-style:solid;border-top-width:3px;text-align:left;border-color:#000000;min-width:597px;"&gt;&lt;font style="FONT-STYLE: italic;FONT-FAMILY: Arial;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;"&gt;Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares.&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;/div&gt;&lt;p style='margin-top: 0pt; margin-bottom: 0pt;'&gt;&lt;/p&gt;&lt;p style='margin-top:12pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;Our board of directors has the discretion to determine the payment and amount of future dividends. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:21pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;"&gt;COMMON STOCK REPURCHASE PROGRAM&lt;/font&gt;&lt;font style="font-family:Arial;font-size:10pt;font-weight:bold;"&gt;S&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;On September 11, 2007, our board of directors authorized the repurchase of additional shares of our common stock provided that the amounts expended for such purposes did not exceed the greater of $2 billion or amounts expended to purchase no more than 40 million shares. Purchases may include open-market and negotiated transactions, structured purchase arrangements, and tender offers.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;In April 2008, we entered into a Collared Accelerated Share Acquisition Program under which we prepaid $1 billion to repurchase shares of our common stock to be delivered later in 2008 in a share forward transaction. Our outstanding shares used to calculate earnings per share were reduced by the number of shares repurchased when they were delivered to us, and the $1 billion purchase price was recorded as a reduction in shareholders' equity upon its prepayment. We received 18,416,241 shares under the program&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; during 2008&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; based on a final weighted average price of $54.30 per share.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;In September 2010, we entered into a Collared Accelerated Share Acquisition Program under which we prepaid $500 million to repurchase shares of our common stock in a share forward transaction. The total number of shares purchased (subject to a minimum of 8,078,000 shares and maximum of 10,321,889 shares) will be determined by dividing the $500 million purchase price by the volume-weighted average trading prices of shares of our common stock during a valuation period, minus a fixed discount and subject to a minimum and maximum price set during a hedging period. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;We expect t&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;he program &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;to be completed in the first quarter &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;of 2011.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;Our outstanding shares used to calculate earnings per share are reduced by the number of shares repurchased when they are delivered to us, and the $500 million purchase price was recorded as a reduction in shareholders' equity upon its prepayment. We received 5,670,006 shares &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;in&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; September 2010, and 2,407,994 shares &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;in&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; October 2010. We will receive any additional repurchased shares above the minimum at the end of the valuation period, which will continue until the program is completed.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;These&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; share repurchase program&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;s are&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; unrelated to share-based comp&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;ensation as described in Note 9&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;.&lt;/font&gt;&lt;/p&gt;</NonNumbericText><NonNumericTextHeader>NOTE 13. SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE The following table provides the per share computations for our earnings for the years</NonNumericTextHeader><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios></Cell></Cells><OriginalInstanceReportColumns /><Unit>Other</Unit><ElementDataType>us-types:textBlockItemType</ElementDataType><SimpleDataType>string</SimpleDataType><ElementDefenition>No definition available.</ElementDefenition><ElementReferences>No authoritative reference available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><IsEPS>false</IsEPS><Label>Shareholders' Equity And Earnings Per Share</Label></Row></Rows><Footnotes /><NumberOfCols>1</NumberOfCols><NumberOfRows>2</NumberOfRows><ReportName>SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>false</HasCustomUnits><SharesShouldBeRounded>true</SharesShouldBeRounded></InstanceReport>
