AERCO's Water Heater Management (WHM) system creates significant operational, maintenance, and financial benefits for consulting-specifying engineers, as well as facility managers and owners. Standard on AERCO’s C-More unit controllers, the new WHM optimizes operating efficiencies, eliminates standby losses, increases system reliability through reduced cycling, and tracks daily domestic hot water demands. Designed to sequence up to eight water heaters on the same system, the WHM ensures that all water heaters in the system are operating at maximum efficiency. It monitors firing rate, and opens or closes one motorized valve per unit, as required to meet hot water demand. The system incorporates a unique master/slave backup feature that provides automatic transfer of master functions to the next unit on the chain, in case of designated master unit shutdown. The master water heater determines the unit to enable or disable based on run hours, which helps balance unit run hours, reducing service and maintenance costs. When the WHM disables a unit, the Innovation system will allow the amount of water held in the shell to drop to the ambient temperature. This prevents the unit from needlessly cycling to maintain set point, thereby reducing system standby losses and minimizing unit wear. With this new unique feature, the operating system turndown will equal the individual unit turndown multiplied by the number of units employed, increasing system efficiency and lowering operating costs. WHM further enhances the performance and economic advantages that the Innovation delivers. Its unique tankless design makes the Innovation highly space-efficient and cost-effective, as it eliminates the need for significant storage volume. Available in four sizes – 600, 800, 1060, and 1350 MBH – the Innovation boasts a thermal shock-proof firetube heat exchanger that is highly resistant to scale buildup and impervious to thermal stress for extended life. The all-stainless steel construction further maximizes longevity and the corrugated tubes increase effective heat transfer surface area for optimal thermal efficiencies.