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102 Part i california Water <br />Table 2.5 <br />Water-related energy use in California, 2001 <br />Electricity Natural gas <br />Gigawatt <br />hours <br />Share of state <br />total (%) <br />Million <br />therms <br />Share of state <br />total (%) <br />End uses 14.1 31.2 <br />Urban 27,887 11.1 4,220 31.1 <br /> Residential 13,526 5.4 2,055 15.1 <br /> Commercial 8,341 3.3 250 1.8 <br /> Industrial 6,017 2.4 1,914 14.1 <br />Agricultural 7,372 2.9 18 0.1 <br />Water supply and treatment 4.3 0.1 <br /> Urban 7,554 3.0 19 0.1 <br /> Agricultural 3,188 1.3 0 0 <br />Wastewater treatment 2,012 0.8 27 0.2 <br />Total water-related energy use 48,012 19.2 4,284 31.6 <br />Total California energy use 250,494 100.0 13,571 100.0 <br />sOURcE: california Energy commission (2005). <br />NOTE: statistics on natural gas use refer to the portion of natural gas that is not used as an input in electricity production. <br />uses mainly include operating pumps for groundwater and irrigation systems. <br />Infrastructure-related energy (“supply and treatment” in Table 2.5) is primarily <br />for pumping supplies through conveyance channels and (in the urban sector) <br />to move water in and out of treatment plants and distribution networks. The <br />high energy content of some end uses means that energy costs drive the eco- <br />nomics of some water conservation activities (especially for hot water). As with <br />some energy efficiency measures, water use efficiency investments that reduce <br />hot water use can save customers money within a short time.27 Energy costs <br />also affect the economics of design and operating decisions by water utilities. <br />The high energy requirements of seawater desalination makes this technology <br />particularly vulnerable to rising energy prices (Semiat 2008). <br />Water also is a major source of energy. California relies on hydropower for <br />between 15 and 30 percent of its annual electricity generation, depending on <br />annual runoff and droughts (Madani and Lund 2010).28 The flexibility of hydro- <br />27. On water, see Gleick et al. (2003). On energy, see McKinsey & Company (2007). <br />28. Statewide hydropower revenues exceed $2 billion per year (authors’ calculations, assuming 34,000 gigawatt hours <br />× $0.05 per kilowatt hour = $1.7 billion per year at average wholesale prices, plus the ancillary services of hydropower, <br />such as maintaining reserve capacity and regulating voltage on the grid).