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Efficiency control of thermostatically controlled appliances has been studied in the literature. Programmable thermostats and computer assisted control systems have been developed. The growing interest in smart grid coincided with the increasing awareness and research in agent-based technologies. This paper discusses an approach for adaptive control of thermostatically controlled appliances. A methodology for utilizing evolutionary agents as control mechanisms as well as a case study of agent-based control of residential water heaters is presented.