EXHIBIT 99.3

PG&E CORPORATION

COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
                           
Year Ended December 31,
2003 2002(1) 2001(1)
(in millions, except per share amounts)
Income from continuing operations
  $ 791     $ 1,723     $ 1,021  
Discontinued operations
    (365 )     (2,536 )     69  
     
     
     
 
Net income (loss) before cumulative effect of changes in accounting principles
    426       (813 )     1,090  
Cumulative effect of changes in accounting principles
    (6 )     (61 )     9  
     
     
     
 
Net income (loss) for basic calculations
     420       (874 )     1,099  
     
     
     
 
Earnings (loss) allocated to common shareholders, basic
    401       (853 )     1,099  
Earnings (loss) allocated to 9.50% Convertible Subordinated Notes, basic
    19       (21 )     –  
     
     
     
 
Net income (loss)
     420       (874 )     1,099  
     
     
     
 
Weighted average common shares outstanding, basic(2)
     385       371       363  
9.50% Convertible Subordinated Notes
    19       9       –  
     
     
     
 
Weighted average common shares and participating securities, basic
     404       380       363  
     
     
     
 
 
Employee stock options and PG&E Corporation shares held by grantor trusts
    4       2       1  
 
PG&E Corporation Warrants
    5       2       –  
     
     
     
 
Weighted average common shares outstanding and participating securities, diluted
     413       384       364  
     
     
     
 
Earnings (Loss) Per Common Share, Basic
                        
Income (loss) from continuing operations
  $ 1.96     $ 4.53     $ 2.81  
Discontinued operations
    (0.90 )     (6.67 )     0.19  
Cumulative effect of changes in accounting principles
    (0.01 )     (0.16 )     0.02  
Rounding
    (0.01 )     –       0.01  
     
     
     
 
Net earnings (loss)
   $ 1.04     $ (2.30 )   $ 3.03  
     
     
     
 
Earnings Per Common Share, Diluted
                        
Income (loss) from continuing operations
  $ 1.92     $ 4.49     $ 2.80  
Discontinued operations
    (0.88 )     (6.60 )     0.19  
Cumulative effect of changes in accounting principles
    (0.01 )     (0.16 )     0.02  
Rounding
    (0.01 )     –       0.01  
     
     
     
 
Net earnings (loss)
   $ 1.02     $ (2.27 )   $ 3.02  
     
     
     
 

(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 December 31, 2003, 2002 and 2001) and PG&E Corporation shares held by grantor trusts to secure deferred compensation obligations (281,985 shares at December 31, 2003, 2002, and 2001).