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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.