Exhibit 11
PG&E Corporation
Computation of Earnings Per Common Share

Three months ended

Six months ended

June 30,

June 30,

(in millions, except per share amounts)

2004

2003 (1)

2004

2003 (1)

Income from continuing operations

$

372 

$

328 

$

3,405 

$

245 

Discontinued operations

- 

(101)

- 

(366)

Net income (loss) before cumulative effect of changes
   in accounting principles

372 

227 

3,405 

(121)

Cumulative effect of changes in accounting principles

- 

- 

- 

(6)

Net Income (Loss) for basic and diluted calculations

$

372 

$

227 

$

3,405 

$

(127)

Weighted average common shares outstanding,
   basic(2)

397 

384 

395 

383 

9.5% Convertible Subordinated Notes

19 

19 

19 

19 

Weighted average common shares outstanding and
   participating securities, basic

416 

403 

414 

402 

Weighted average common shares outstanding basic

397 

384 

395 

383 

Employee stock options and PG&E Corporation shares
   by grantor trust

7 

2 

7 

1 

PG&E Corporation Warrants

2 

5 

3 

5 

Weighted average common shares outstanding, diluted

406 

391 

405 

389 

9.5% Convertible Subordinated Notes

19 

19 

19 

19 

Weighted average common shares outstanding and
   participating securities, diluted

425 

410 

424 

408 

Earnings (Loss) Per Common Share, Basic

Income from continuing operations

$

0.89 

$

0.81 

$

8.22 

$

0.61 

Discontinued operations

- 

(0.25)

- 

(0.91)

Cumulative effect of changes in accounting principles

- 

- 

- 

(0.02)

Net earnings (loss)

$

0.89 

$

0.56 

$

8.22 

$

(0.32)

Earnings (Loss) Per Common Share, Diluted

Income from continuing operations

$

0.88 

$

0.80 

$

8.03 

$

0.60 

Discontinued operations

- 

(0.25)

- 

(0.90)

Cumulative effect of changes in accounting principles

- 

- 

- 

(0.01)

Net earnings (loss)

$

0.88 

$

0.55 

$

8.03 

$

(0.31)

               In applying the "two-class" method the following reflects the earnings (loss) allocated to common shareholders after the inclusion of participation rights related to PG&E Corporation's 9.5% Convertible Notes in the allocation of earnings. The 9.5% Convertible Notes are convertible at the option of PG&E Corporation into 18,558,655 common shares. All PG&E Corporation's participating securities participate on a 1:1 basis with common shareholders.


Three months ended

Six months ended

June 30,

June 30,

Earnings (loss) allocated to common shareholders,
   basic

2004

2003 (1)

2004

2003 (1)

Income from continuing operations

$

355 

$

312 

$

3,249 

$

233 

Discontinued operations

- 

(96)

- 

(349)

Cumulative effect of changes in accounting principles

- 

- 

- 

(6)

$

355 

$

216 

$

3,249 

$

(122)

Earnings (loss) allocated to common shareholders,
   diluted

Income from continuing operations

$

356 

$

312 

$

3,252 

$

234 

Discontinued operations

- 

(96)

- 

(349)

Cumulative effect of changes in accounting principles

- 

- 

- 

(6)

$

356 

$

216 

$

3,252 

$

(121)

(1)

Prior period amounts of NEGT, Inc. have been reclassified to discontinued operations.

(2)

Weighted average common shares outstanding exclude shares held by a subsidiary of PG&E Corporation (23,815,500 shares at June 30, 2004 and 2003) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at June 30, 2004 and 2003).