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Water/Energy Nexus Programs

One of the state’s largest end uses of electricity is in the treatment, heating, and conveyance of water in California. This is known to many as the “Water/Energy Nexus.” The IOUs currently offer many incentive programs in the areas of energy efficiency, demand response, and distributed generation related to the water/energy nexus.  

The CPUC recently authorized a series of pilot programs exploring whether energy savings may be realized through water conservation measures. Implicit in this approach is the concept that saving water saves energy.   The Energy Division is currently analyzing whether an increase in energy efficiency portfolio emphasis on measures that maximize energy savings in the water sector – such as through leak loss detection and enhancement of water systems efficiency – may be warranted.  The Energy Division is also currently considering how cost effectiveness should be analyzed for water/energy nexus programs.


The Energy Division will be hosting a public workshop on Water-Energy marginal water supply and avoided costs on April 25. The purpose of this workshop will be to present a staff proposal on marginal supply and preview the avoided cost calculations methodology and tools. This workshop follows up on the project work discussed at the January 30, 2014 workshop. Those wishing to gain more familiarity with this work are encouraged to review materials from the earlier workshops. The material can be found at:

Teleconference info: (866) 687-1443 passcode: 1049466


Past Workshops:

Water Energy Programs:


PG&E: Water/Wastewater Programs (offered through industrial sector)


PG&E: Third Party Program for Wastewater Process Optimization (CalPOP)


SCE: Business Solutions for the Water & Wastewater Industry


SCE:  Joint Customer Outreach & Education on Saving Water and Energy


SoCalGas: Rebates & Incentives for the Water Supply and Treatment Facilities


SDG&E: Partnership with San Diego County Water Authority


Embedded Energy in Water Studies and Pilots:


The Commission directed the IOUs to partner with water agencies and implement programs to decrease the amount of energy used to obtain, treat and distribute water to end-use customers.  Read Water Studies 1, 2 and 3 and the Embedded Energy in Water Pilot Programs Impact Evaluation.


Last Modified: 4/11/2014

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