Help with Skill Level Escalation for Case Management

Could somebody explain me how it works the Skill Level Escalation Method, please?

I already set up:

1) Provider Group

2) Provider Group Types - The response time for Case Type 1  and Case Source 1= 24 hrs

3) Provide Group Priorities for 2 = comm %= 50, Escalation %=25, Escalation Warning % = 25, Resolution Warning % = 10, Escalation Start % = 10

4) I have Skill Level 1,2,3

5) We are not using Contracts

Issues that I have. I entered the Case on 12/3/2014 at 10:59:00

1) F1755 has the date stamped as 12/3/2014 and time 15:59:00 = GMT and not EST =  how I can changed to EST?

Escalation Time = 10:50:00+12 = 22:59:00

Escalation % = 24*.26 = 6hrs - each level has 6 hrs to work with the case

     The second and third levels are not getting any email only the message in the WC. Do I need to set up something else? I already set the email address in Address Book SWM screen.