PSEG Power LLC, a subsidiary of Public Service Enterprise Group Incorporated (NYSE: PEG), today announced that it will become a member of the PennEast Pipeline Company, LLC, which is developing a 100-mile pipeline that will bring lower cost natural gas to New Jersey homes and businesses.

The PennEast Pipeline is designed to provide natural gas service to the equivalent of 4.7 million homes, up to 1 billion cubic feet per day, offering consumer savings through lower energy and gas transportation costs. The pipeline will begin in Luzerne County in northeastern Pennsylvania and end at Transco's Trenton-Woodbury interconnection in New Jersey.

"This project will provide New Jersey with reliable access to lower cost, clean natural gas," said Bill Levis, president of PSEG Power. "The drop in natural gas prices, coupled with an increased emphasis on reducing environmental impacts, has led to a significant growth in the demand for natural gas. This project will help meet that growing demand by ensuring that New Jersey suppliers have greater and more reliable access to affordable natural gas."

The proposed pipeline will help reduce price volatility to the benefit of New Jersey's nearly 3 million natural gas consumers.

PennEast is investing nearly $1 billion to build the pipeline, creating approximately 2,000 jobs during construction. Additional PennEast members include AGL Resources, NJR Pipeline Company, a subsidiary of New Jersey Resources, South Jersey Industries and UGI Energy Services, a subsidiary of UGI Corporation. PSEG Power will have a 12 percent interest in PennEast.

PennEast has begun preliminary engineering studies and will file a formal application before the Federal Energy Regulatory Commission (FERC) in 2015. Construction is projected to begin in 2017, pending approvals.

Public Service Enterprise Group (NYSE: PEG) is a publicly traded diversified energy company with annual revenues of $10 billion. Its operating subsidiaries are: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Long Island.