In a state whose political and economic history has been shaped by water more than any other resource, California Public Utilities Commission member Dian Grueneich last week used her power as the regulatory panel’s assigned commissioner on the issue to order the state’s four major private-sector energy utilities to develop one-year pilot programs for stepping up water conservation aimed at cutting the large energy volumes used to produce, transport and treat water.

By this action, each major energy utility is required to form a partnership with one large water provider to implement a jointly funded program designed to maximize embedded energy savings (per dollar of program cost). The utilities are also encouraged to work together to develop a common program and funding approach, a CPUC spokesperson said.

Limited statewide to about $10 million in energy utility costs, the plans for the utility programs will be discussed at a workshop in the second quarter next year to determine what needs to be done to prepare for full-blown water-related energy programs during the 2009-11 planning period.

Grueneich indicated through the spokesperson that she intends to forge more of a “partnership” between energy and water utilities to promote this increased savings. “One of the largest sources of demand for electricity and natural gas involves the development, transportation, use and treatment of water for domestic and business consumption,” the spokesperson said. “Conserving water saves energy.”

The CPUC commissioner ordered filings for one-year pilot programs by Jan. 15 from Pacific Gas and Electric Co., Southern California Edison Co., San Diego Gas and Electric Co. and Southern California Gas Co. to find what she called “cost-effective ways” to reduce water use. These are in addition to their past programs related to the end-use of water, such as water heating.

Calling them “cold water” savings, or “upstream” savings, parties in an ongoing water-energy CPUC proceeding in which Grueneich is the assigned commissioner identified four ways to “reduce net energy consumption related to water” by creating embedded or upstream savings. The four ways are:

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