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Demand response (DR) is an important demand-side resource that allows for lower electricity consumption when the system is under stress. This paper presents a DR framework that can be implemented within a home area network, as well as a conceptual hardware architecture for a Home Management System (HMS) and appliance interface units that enable in-home DR implementation. The proposed DR strategy allows for controlling energy-intensive loads taking into consideration both consumers' comfort and load priority. The HMS acts as the central monitoring and decision-making unit for all energy-intensive loads within a home. The appliance interface unit communicates with the HMS while capturing electric power consumption data and performing local load control. Standby electric power consumption of each element in the network is also discussed.