An electric water heater has a thermostat setpoint, and a deadband. The temperature of the water inside of the tank must be maintained within the range of the thermostat setpoint minus the deadband. If the thermostat setpoint is 130°F and the deadband is 10°F, the water temperature must remain between 120°F and 130°F. If the temperature decreases to 120°F, the heating element turns on, in order to raise the temperature of the water. The heating element remains on until the water temperature reaches 130°F, at which time the heating element turns off. The water temperature is allowed to decrease until it reaches 120°F, at which point the heating element turns on again.