Jerry, Not so... Here's how it should work: When a water heater is at rest, the tank will be filled with hot water (no need for the element to be on). When a hot water faucet is turned on in the home, hot water is taken from the top of the tank and cold water is again supplied at the bottom through the dip tube. The cold at the bottom of the tank activates the thermostat for the lower element. The lower element then comes on and heats the incoming cold water. The upper element will still be surrounded by hot water and will be satisfied. When hot water continues to be drawn, the tank will then be filled with cool water because the lower heating element will not be able to warm the water quickly enough as it comes in. After a while, the hot water will be drawn off up to the level of the upper thermostat. Now, both thermostats are calling for heat. Since only one element can operate at a time, the upper element has priority and will shut off the lower element. The upper element has priority because after the tank has run out of hot water, the upper element is the fastest way to replenish the hot water. Since the water is drawn off the top first, the upper element heats the water near the top of the tank. Once it heats the water in the top part of the tank, the thermostat will be satisfied and the upper element will shut off. The lower element now gets electricity and heats up the water in the lower two thirds of the tank. Under normal conditions, the lower element is in operation the majority of the time, although the upper element has priority. Rich Rushing