I did a little digging and it looks as though my wife's "helpful" friend may be wrong (or way to frum for my taste, her husband wears a streimel). Check out the following link for the pros and cons on this topic and its conclusion.
In short it appears to state that one can use a timer the only problem that they discuss is if one can put something on the blech when it is off to be warmed when the timer kicks in.
http://www.zomet.org.il/Eng/?CategoryID=198&ArticleID=407
So it looks like I can save electricity on shabbos as well as not have the blech on while I sleep. Yay! Thanks for the post!
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