Power producers rise after PJM auction prices hit record high

Shares of U.S.-based independent power producers rise between 1% and 5% in thin premarket trading

Constellation Energy CEG.O up 1.9% at $347.31, Vistra VST.N rises 2.3% to $163.64 and Talen Energy TLN.O up 5.1% at $369.99

The largest grid operator in the U.S., PJM Interconnection, reported fresh record-high capacity prices of $333.44 a megawatt-day in its auction on Wednesday

PJM holds such auctions to determine the prices that energy companies are paid to guarantee they run their power plants when called upon

Melius Research analyst James West says CEG and TLN are more exposed to PJM, with 49% and 98% of generation, respectively

As of last close, CEG has gained 52.4%, VST is up 16% and TLN is up 74.7% this year