Michael, you will need to check the settings of both thermostats for the upper 
heating element and the lower.  Set the upper one for the temperature you want 
the water to be, water used comes from the top of the tank.  Set the lower one 
at a lower temperature than the upper therm.  The cold water enters the tank at 
the bottom of the water tank from a tube usually from the top.  That way the 
cold going in will not come out the top and mix with the hot water wanted.  
Also the bottom heating element is set a little lower because it helps prevent 
fast cycling every time hot water is used and cold enters and allows mixing at 
the bottom of the tank as you use the water off the top of the tank.  It saves 
a little money by setting the bottom element lower.  If saving money is not 
worth having a smaller amount of hot water available just set them both the 
same.
............bob

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