Pacific Gas & Electric location located in San Francisco. Credit: David Tran Photo/Shutterstock.com

Lawyers representing victims of recent Northern California wildfires say they intend to object to a proposed $11 billion deal Pacific Gas & Electric Co. has reached with insurers related to claims stemming from the 2017 Northern California wildfires and the 2018 Camp Fire.

PG&E announced the deal jointly Friday morning with a group of insurers who represent about 85% of the subrogation claims pending against the Northern California utility company in its Chapter 11 bankruptcy case. The insurers, who have been represented by counsel at Willkie Farr & Gallagher in the case, said in a statement Friday that the deal wouldn't fully satisfy the $20 billion in unsecured claims they have pending, but that it would provide a pathway for the company to emerge from Chapter 11 by a June 2020 legislative deadline.

Lawyers for fire victims, however, have vowed to fight the deal in bankruptcy court, where it requires sign-off from U.S. Bankruptcy Judge Dennis Montali. Cecily Dumas of Baker & Hostetler, the lawyer representing the tort claims committee in the bankruptcy, emailed a statement Friday morning indicating that the committee would "vigorously object" to the proposed deal.

"PG&E is taking money out of the pockets of people whose homes and businesses it burned down and handing the money to insurance companies to buy their cooperation," the committee's statement said. "This settlement violates the rights of the victims under California law to be compensated first. The settlement shows that PG&E puts victims' needs last."

Friday's announcement is the second major deal PG&E has announced to settle wildfire claims. In June the utility announced a $1 billion deal reached with eight local public entities to settle claims relating to the 2015, 2017 and 2018 wildfire seasons.

Bill Johnson, CEO and president of PG&E, said in a prepared statement that the deal announced Friday with insurers was "another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires."

"As we work to resolve the remaining claims of those who've suffered, we are also focused on safely and reliably delivering energy to our customers, improving our systems and infrastructure, and continuing to support California's clean energy goals," Johnson said. "We are committed to becoming the utility our customers deserve."

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