That's a new one. Normally that light will only come on when you have a failure to ignite cycle when the GAS switch is on. I've never heard of it illuminating with the electric only switch on.
Barring further research I'd be inclined to think the control board has a problem, which unfortunately, is a common Atwood water heater and furnace problem.
Might want to find the manual for your specific water heater model online and/or call Atwood to see what they have to say about this.
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Ted & Melinda
2016 ACE 27.1
2016 Chevy Sonic Toad - Selling
2020 Chevy Colorado Z71 Trail Runner Toad
2024 Chevrolet Trax 2RS - Soon 2B TOAD
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