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I've always considered this a "safety" cut-off switch. So you don't accidentally turn on the electric heating element (using the inside controls) when there is no water in the water heater tank.
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2022 Cedar Creek Champagne 38EL - "Big Bertha"
2019 GMC Sierra 3500 Denali HD 6.6L Duramax TD, CC, 4WD, DRW - "Mr. Beefy"
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