Issues related to global warming and weather changes have forced people start to pay attention to energy saving. We expect that Smart Home Energy Management (SHEM) would be an important development over the next decade. In some environments cost is important, in other environments living quality is important and in other environments a tradeoff between cost and living quality is important. SHEM means being able to manage electrical loads so as to meet different purposes in homes. In this thesis, we develop a SHEM to curtail some electrical loads at peak time to meet predefined circuit level demand limits while minimizing the effect on users¡¦ living quality. The core of our SHEM is an electrical control loop which is developed based on heuristic modifications through lots of case studies and trials. To this end, we study several utilization characteristics of household loads including air conditioning, water heaters clothes dryers, and electric vehicles and model their behaviors through computer simulations. Finally, we implement the whole ideal of our SHEM in LabVIEW (Laboratory Virtual Instrument Engineering Workbench). Several simulations are conducted to verify the robustness and efficiency of our SHEM. keyword : Quick Charge,Load Priority,Convience Preference,Severity Indices,Duration Indices.