A good showerhead will reduce water consumption by half. Assuming daily showers for a family of four, that could be as much as 1,200 gallons saved each month. Your electric company may offer you a discount if you allow a 'peak load' controller to be placed on your water heater. It turns off your water heater when the electric company is facing high demand. It's also important to remember that the water heater does require some regular maintenance .
Mineral build up can reduce efficiency.
Draining a few gallons from the tank quarterly will solve the problem. Laura mentioned that her water heater is old. Perhaps it's time to consider a new one. Old water heaters will operate for many years at a low efficiency before they fail. Naturally, that low efficiency will translate into higher energy bills for Laura.