Tips on Adjusting Your Water Heater
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Step 1: Locate the water heater adjustment knob. It is usually toward the bottom in front.
Step 2: Choose an adjustment. 120 degrees is recommended. When a water heater is installed, it is usually set at 140 by default, but by reducing it 20 degrees, your gas bill could be reduced by as much as 10%. If you have young kids, keep it set at 120 degrees or lower to prevent accidental scalding. A child can get injured by hot water in 2-3 seconds from water at only 125 degrees.
Step 3: Wait an hour, and take the temperature of your water to make sure it is adequate.