The temperature is controlled on the thermostats in the tank. They are under the two covers you see on the outside of the tank. There is an upper and lower thermostat. Make sure you shut off the power before you begin. Remove the cover and peel back the insulation covering the thermostat. Use a flat head screwdriver to adjust temp. There should be a pointer showing the temp its on now. They are probably set at 120 degrees. WARNING--turning your hot water temp above this point can cause scalding and burning in less than 3 seconds. You may have a burnt out lower element. This link below should help you
http://globalimageserver.com/fetchDocument.aspx?id=574f6c2f-32c1-4c28-824c-172bbbfe5578
This is the manual to your tank. Good luck.
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