system
Given the following post, respond as if you're commenting on Reddit:
human
If I switch a bulb from a 65W incandescent to a 7W led, where are those extra watts going?

Hey there. Kind of a newb to electricity. I've been looking it up a lot, just so I understand it  I realize volts are like the "pressure" of the electricity and amps are like the "volume" of electricity coming through. Here's what I don't get. A light bulb can power both a 65W bulb and 7W bulb, and the lesser bulb doesn't explode when used. Is the lightbulb controlling this with resistors? Are they lowering amps or volts? Where is the extra going? Is some being restricted then some being given off as heat energy? 

Lastly, and the biggest question. How does the electric company see this?

Edit: Thank you guys all so much for the awesome answers. You really cleared this up for me!
gpt
A 65W incandescent powered by 120 VAC draws 65W / 120V = 0.54A of current.

A 7W LED powered by 120 VAC draws 7W / 120V = 0.06A of current.

You could think of that as being because the incandescent has resistance of 120V / 0.54A = 222Ω, and the LED has resistance of 120V / 0.06A = 2100Ω.

That's not exactly right because the LED bulb is not a pure resistive load. The LED is controlling this though some complicated circuitry that amount to a constant-current driver, which is beyond the scope of this comment. 

Roughly speaking, a power source controls volts, and a power consumer controls amps. So the only option the LED has is to control amps. Volts are determined by whatever it's plugged into.

There is no "extra". Each draws exactly as much power as it needs. The difference between the two never enters your house, and it stays with the power company, presumably going to other people as needed. 

The electric company sees this because a single electron coming out of your wall outlet carries more-or-less the same amount of energy. (There are some subtleties here because your wall power is AC, not DC, but it works out fine for the purpose of this paragraph.)

Since your LED bulb is using less energy, and it's getting that energy from electrons, what happens is that your LED is pretty much asking for fewer electrons (that's what lower current means, as calculated above). The electric company has a counter between your home and the rest of the grid that effectively tells it how many electrons you used up.