PJM auction ‘most impactful’ for Talen Energy, says Morgan Stanley

After results from PJM’s 2026/27 Base Residual Auction were released and prices cleared at the ceiling of $329.17/MW-day, Morgan Stanley analyst David Arcaro contends that the price increase has “the most meaningful impact” on EBITDA for Talen Energy (TLN) and “modest impacts” to Vistra (VST), Constellation Energy (CEG), PSEG (PEG) and NRG Energy (NRG). The auction results reflect tight market fundamentals, says the analyst, who expresses “increased conviction” in the 2027/28 auction in December also clearing at the ceiling.