I have a Whrilpool water heater that is only 3 years old. I noticed a burning smell and smoke coming from the panel on top. We opened it and found burnt wires. I called an electrician and he cut the wires back and put new caps. He said it was nothing to worry about and charged me 50 dollars. It is now 3 weeks later and I noticed the smell again. I thought I had been smelling it today it was stronger so we opened it up. I found the cap over the wires was black and melting again. What is going on? Also, I am not sure if this is related but last night the lights went out in my bathroom. Something tripped the breaker. The water heater is on the same side of the house in the same breaker box.