If your water heater thermostat is set too high, you may be able to reduce the temperature and/or install a timer to prevent energy and money from going down the drain. Reducing the temperature saves energy mainly by cutting down on the amount of heat that is lost through the walls of the hot water tank (known as "stand-by" losses). If appliances such as clothes washers and dishwashers use hot water at the temperature supplied by the water heater, and do not mix this water with cold water to achieve a set hot water temperature, additional savings will occur.

Check the temperature setting of your hot water tank by using a thermometer at a faucet near the tank (thermostat settings on water heaters are not always accurate). Set the thermometer in a glass and run the hot water into the glass until the temperature stops rising.

Consider the following guidelines for common activities using hot water.

Hand washing: 110° - 115° F

Showers: 110° - 115° F

Dishwashers: Residential-type dishwashers may require 130° to 140° F water to perform properly. Some models have built-in booster heaters that allow the water heater to be set at 110° to 115° F. Liquid soaps for automatic dishwashers are designed to work well at lower temperatures. Experiment with the water temperature at the dishwasher and choose the most economical setting.

Laundry: Most clothes can be effectively cleaned in either warm or cold water. In fact, hotter water can cause some stains to "set." Washing clothes in warm or cold water will not only save energy, but also prevent premature wear and fading of fabrics. Use a cold water rinse for all loads.

Adjusting the hot water temperature is usually straightforward. A plumbing or mechanical contractor can make the adjustment, or you can do it yourself. With an electric water heater, the thermostat is usually located behind a cover plate on the side of the tank, and can be accessed by removing a few screws (many electric water heaters have two thermostats - one for the upper heating element and one for the lower - be sure to adjust both).

Caution! When turning down the setting on an electric water heater, be sure to shut off the power at the circuit breaker before removing the control cover plates to avoid the danger of electric shock.

You may find that your first adjustment results in inadequate hot water for your needs. Experiment with the setting to find a temperature that provides adequate hot water, while still minimizing wasted energy.

A "stand-by system" keeps water in the tank hot 24 hours a day. However, many consumers only use hot water during relatively short periods of time each day. A water heater timer can be used to turn the water heater on for h igh-use periods and off during low-use periods. Most timers will allow multiple on/off periods per day and have a manual override switch to allow water heating at any time.

Water heater timers are most cost-effective when combined with "time of use" rates, an option offered by a number of electric utilities. During "peak" hours, the rate is higher, and drops during "off peak" hours (usually at night). If the water heater timer can be set so that the heating elements only operate during off peak hours, significant savings can be realized ( actual savings will depend on the difference between standard and off peak rates).