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There is increasing need to improve the electric load management in building applications. This is driven by the increasing cost of fuel and limitations on available distribution infrastructure. One aspect of this is the coordination of electrical loads to minimize the variation in power demand. Recent developments in smart grid technologies have created the opportunity to provide real-time electricity costs to residential users. In order to deploy smart building energy management systems, this paper presents a new method and experimental results of a control scheme that allows the arbitration of electrical loads in order to meet performance objectives for appliance operation while also minimizing the variation in overall daily usage.