Abstract: The disclosed system reduces power use during peak loads by automatically shifting the energization of the water heater to periods of off-peak power use. An energy controller maintains a calendar clock and controls the application of power to an electric water heater so that only on non-holiday weekdays, power to the water heater is interrupted during those periods of the day which have been predetermined to be the periods of peak power usage. The consumer whose water heater is controlled in accordance with the system is provided with an override button so that once a day the consumer may institute an override period to energize his water heater regardless of the peak power usage schedule. The energy controller contains in a microprocessor memory status data which includes the calendar time, a listing of the holidays, the schedule of peak power usage and the override interval.