Final answer:
Fixed storage water heaters of 120 gallons or less are required to have a branch circuit rating of at least 125 percent of the nameplate rating.
Step-by-step explanation:
All fixed storage water heaters of 120 gallons or less are required to have a branch circuit rating of not less than 125 percent of the nameplate rating of the water heater. According to the National Electrical Code, heating appliances should be served by a branch circuit that can handle a load of at least 125% of the appliances' rating to ensure the circuit is not overloaded under normal conditions. This rule is in place to account for the inrush of current when the heating element kicks in and to maintain safety by preventing circuit overloads which could result in overheating or electrical fires.