With the growth in smart technology, customers have a chance to contribute to demand response programs and reduce their bills of electricity actively. This paper presents an intelligent wireless smart plug demonstration, which is designed to control the electrical appliances in the home energy management system (HEMS) application with a response to the utility company’s signal. Besides, a linear model of an energy management system utilizing a dynamic priority for electrical appliances is used as an energy management strategy. This can be useful for decreasing energy consumption in peak hours. Proposed hardware is tested with two different price strategies such as real-time pricing and a combination of this and incremental block rate (IBR) pricing. A small one-story house with ordinary electrical appliances is used as a test-bed for the proposed hardware and strategy. Initial results show that intelligent plugs can decrease the energy cost by 9% per day with an effective peak-to-average ratio deduction compared to the domicile without deploying intelligent plugs and controllers.