Work presented in this paper is fuzzy logic based Water Heater Demand Controller considering the consumer preferences and desires. A fuzzy controlled intelligent system is proposed, which conserves the electrical energy in case of water heating solutions. In modern days, consumers demand more pricing and usage operations making load management programs increasingly prevalent. A methodology is proposed to reduce the usage of the electrical energy based on needs and comfort. Thereby, the demand on the power system can be reduced during peak hours with the help of load management programs. The most popular load management program is End-Use Equipment Control. It is also called as Direct Load Control. DLC is used to shape the load curve by cycling consumer's large current drawing appliance, like water heaters. This paper presents the application of DSM techniques to Water Heater Demand Controller to limit the power consumption based on consumer choice and satisfaction. Results presented are to show the effectiveness of the proposed intelligent water heater demand controller to minimize the energy consumption, reduce the energy bill and satisfy consumer needs based on environmental conditions/seasons.