Its used to cool the condenser. Thus, it uses pure cold water. I had an eye on an W\D combo service manual for an old Asko unit which stated 0,35l of water per minute of drying. I guess, the LG might use a bit more.
Right, it's electricity that you wanted to conserve - I somehow thought all the time it was primarily water...
What heat setting are you using in the dryer? All "HE" dryers these days run on low to medium heat on their Eco cycles to dry the clothes with mostly air.
Does anyone know if these Kenmore (model 28102) has recirculating water? I know the Maytag Bravos of these version does but I can't find anywhere in the description about that. This one is on clearance and has gotten excellent ratings.