The Public Utility Commission this week approved a settlement for the default service programs for Metropolitan Edison Co. and Pennsylvania Electric Co.

The Commission voted 3-1 to approve the settlement among the companies, Office of Consumer Advocate, Office of Small Business Advocate, Retail Energy Supply Association and other formal complainants. Commission Chairman James H. Cawley issued a statement.

Commission Vice Chairman Tyrone J. Christy issued a dissenting statement.

Under the settlement, the DSP will have a 29-month term, beginning January 1, 2011, and ending May 31, 2013. The companies will:

-- Include competitive procurement plans that provide for a mix of spot purchases, short- and long-term contracts, including using a descending clock auction to procure the full-requirements component of the supply mix and requests for proposals;

-- Include a mix of supply resources that is designed to obtain least cost generation supply contracts on a long-term, short-term and spot market basis;

-- Conduct a separate solar procurement process designed to meet the solar photovoltaic requirement for the duration of the programs.

The 1996 electric competition law requires electric companies, or a Commission-approved alternative supplier, to provide default electric generation service to customers who have not selected an alternative generation supplier. The default service prices for electric generation service are required to result in a procurement strategy to produce the least cost to customers over time.