A clothes washer is provided comprising one or more power consuming functions and a controller in signal communication with an associated utility. The controller can receive and process a signal from the associated utility indicative of current state of an associated utility. The controller operates the clothes washer in one of a plurality of operating modes, including at least a normal operating mode and an energy savings mode in response to the received signal. In the case of a water heating clothes washer containing a heater assembly, the controller is configured to change the power consuming characteristics of the heater assembly to reduce power consumption of the clothes washer in an energy savings mode.