Management control of household appliances using continuous tone-coded DSM signalling

A system and method of communicating between a master and a slave device for managing home energy are provided. A transmitter is operatively associated with one of a meter and a home energy manager for emitting a carrier signal at a selected frequency. A tone is superimposed on the selected carrier frequency and represents an operational energy cost level output from an associated utility. A receiver receives the emitted carrier signal with superimposed tone. A microcontroller associated with the home appliance then controls the home appliance in response to the emitted carrier signal with superimposed tone. Multiple distinct frequencies correlate to specific rates, and decoding or detecting the presence of one or more tones can be used to represent a binary number that allows the meter/controller to communicate "intelligence" with the home appliance.