What’s Next for Valley Vision

Continuing the collaboration with relentless innovation

With the new year in sight, the Tennessee Valley Authority (TVA), its local power company (LPC) partners and community stakeholders have an opportunity to reflect on last year’s achievements while setting a course of action for 2026.

TVA continues its mission of delivering reliable, affordable energy across its seven-state service area. Valley Vision is a key component of the agency’s future — allowing the enterprise to adapt to new challenges while staying focused on its mission of service.

Valley Vision is a multi-phase initiative aimed at transforming the region’s power grid into a smarter more resilient network capable of integrating diverse and distributed energy sources and meeting increasing demand. It’s backed by more than 45 participants — including municipal utilities, regional cooperatives and associations — who have joined the Valley Vision collaboration group.

Together, they’re identifying opportunities to develop advanced capabilities, implement innovative solutions and create new processes that deliver value in a rapidly evolving energy landscape.

Doug Perry, Senior Vice President of Corporate Planning and Development at TVA, and Jamie Bach, TVA’s Director of Strategic Initiatives and Business Development, share their insights into the progress made in 2025 and a look at what’s ahead.

Q: The energy landscape of today is dynamic and always changing. Tell us about how Valley Vision maintains strategic focus with shifting trends.

Bach: At its core, Valley Vision is about — in a word — vision.

In many ways, adapting to the changing energy landscape is like running a race. But in today’s dynamic environment, the route is being continuously redrawn. In this race, success comes from maintaining a shared vision, adjusting as conditions shift and staying resilient for the long-term.

We are navigating a course that has evolved from a one-way, predictable single track to a complex, intelligent multi-lane highway with all kinds of new competitors. Valley Vision can continue to be the framework that engages and maintains our shared vision, building on the 90-year legacy of the Valley’s public power model.

The question is, how do we get there? We have learned there’s value in the journey itself, and every step forward is worthwhile. The journey to this future state of the Valley is as important as the destination — along the way we will pass mile markers highlighting critical stages of innovation with the common goal of creating lasting value and prosperity for the region.

“Valley Vision is not a onesize- fits-all solution. It’s an adaptable framework that needs to be in constant evolution to meet the changing needs of the region.” –Jamie Bach, TVA’s Director of Strategic Initiatives and Business Development

Q: Reflecting on this past year, how did Valley Vision build on the foundation laid in Phase 1? And what do you see as the biggest opportunities moving into 2026?

Bach: In 2025, we saw the three core initiatives of Valley Vision start to truly converge. That integration is key to unlocking Valley-wide value.

There’s a shared belief among the Valley Vision team that this work truly matters. I have so much appreciation for our partners who have volunteered their time this year to work toward this vision. And while I’m sure we are all eager to deliver on some of these goals, the day-to-day collaboration that happens within these initiatives has been a rewarding experience for all of us.

Looking ahead to 2026, our biggest opportunity lies in deepening collaboration between TVA, local power companies, governments and the people we all serve. That’s how we’ll advance the core initiatives of Valley Vision and build a lasting legacy for the region.

Perry: We launched Valley Vision in 2022 with about 18 months of discussions between LPCs, research institutions, industry leaders and community stakeholders. Today, TVA is almost three years into the initiative and collaboration through our three main initiatives remains our key priority.

First, Valley Vision is prioritizing optionality and autonomy for LPCs to meet local and community needs, while maintaining fair pricing that protects all ratepayers. We’re also focusing on distributed energy resource (DER) integration and enablement by expanding our capabilities to enable dynamic, two-way communication between TVA and the larger energy system. The last puzzle piece is collaborative, system-wide planning which brings all utilities to the table, enabling long-term value creation and optimal utilization of all of our regional resources.

These initiatives are deeply woven into TVA’s commercial strategy and are helping shape how we adapt to market forces, serve our customers and plan for the future.

Q: What are some key milestones or goals the team is aiming for to keep the Valley Vision momentum going? What role do partnerships play in meeting these goals?

Bach: Our immediate focus is optionality. The team is exploring new rate options that align to TVA’s cost of generation and unlock additional optionality for LPCs to innovate and meet the growing needs of their customers and communities.

In addition to rate optionality, another one of our top priorities is continuing to modernize distribution technologies — integrating smart grid tools like real-time monitoring, automation and advanced analytics. These upgrades are foundational to enabling a two-way grid.

As an example, this year — in collaboration with our partners — we successfully gathered updated capability information from 90% of LPCs. This information serves as a valuable resource to guide our efforts and provide insights into our current standing in the region. Working together, these insights help us engage in collective discussions and identify challenges that we can address collaboratively to achieve our desired objectives and move forward together.

We’re also focused on coordinated planning between transmission and distribution operators. This avoids redundant infrastructure, improves reliability and ensures we’re integrating new energy sources efficiently.

Partnerships are absolutely essential. Valley Vision is an adaptable framework, and it must evolve with the trends and opportunities in the market, as well as the needs of the communities we serve.

Perry: TVA’s priority is to continue providing reliable, affordable power — while ensuring that new programs enhance the quality of service for our customers and ratepayers.

Over the next year, we aim to advance several Valley Vision initiatives. We’re also asking our customers to bring us their solutions. Help us work smarter and serve you better.

Everything we do is done in partnership, and we want to continue working together with LPCs and communities to ensure the Valley region prospers for generations to come.

Q: How is Valley Vision preparing for a two-way energy grid? What are some exciting new technologies helping advance this vision?

Bach: We’re laying the groundwork for a grid that’s interactive, intelligent and resilient. That means investing in technologies that support bidirectional energy flow, like advanced metering infrastructure, distributed energy resource management systems (DERMS) and AI-driven grid optimization tools.

One area we’re especially excited about is battery energy storage systems (BESS). Our team has been deeply engaged in exploring deployment strategies that maximize value — what we call “value stacking.” Batteries can provide multiple services — grid stability, peak demand reduction, cost deferrals and customer resilience. It’s a game-changer.

Perry: TVA is exploring a range of emerging technologies and solutions to strengthen the region’s energy future. For example, in November, our TVA board approved up to 1,500 MW of bulk electric system storage under contracts to provide reliability and system flexibility.

Additionally, TVA is working with LPCs on a smart thermostat program, which now has roughly 51,000 devices enrolled, providing more than 51 MW of flexible capacity during peak demand events while also providing cost savings for those who enroll. We’re also pursuing nuclear advancements, such as small modular reactors and partnerships with companies like GE Vernova Hitachi Nuclear Energy, ENTRA1, Oklo, Type One Energy, Google and Kairos Power. And building public-private partnerships with innovators, incubators, national laboratories and venture-backed companies to deliver cost-effective advanced energy solutions.

Q: If you had to choose one word to guide the Valley Vision team in the upcoming year, what would it be and why?

Bach: Can I have two words? Relentless Innovation.

Valley Vision is not a one-size-fits-all solution. It’s an adaptable framework that needs to be in constant evolution to meet the changing needs of the region.

As Valley Vision moves into its next phase, the focus remains on adaptability, collaboration and delivering value. The TVA team extends its gratitude to all partners and stakeholders who’ve contributed to this transformative effort.

This work isn’t easy. It takes grit, creativity and a willingness to solve hard problems over long-term horizons. But this is meaningful work.

The change we’re working toward is not a decade away. It’s happening right here, and right now. And we need to keep pushing forward, relentlessly.