The years after voters created SMUD in 1923 were filled with
engineering studies, political battles, elections and court filings. In March 1946, the California Supreme Court refused PG&E's final petition, and PG&E finally sold its distribution system at the price fixed by the Railroad Commission.
The sales contract was signed in April. In the next eight months, SMUD built an organization of more than 400 linemen, engineers, electricians, managers and office workers to take over operation of Sacramento's electric system.
SMUD's new employees faced daunting challenges in 1946. The electric distribution system that had taken so long to acquire was old, some of its dating back to 1895. It was a jumble of competing systems that had been merged into PG&E.
"The lines were in awful shape," said the late Hugo (Doc) Knapp, who retired in 1977 as assistant chief dispatcher. "You could drive along for miles to Galt, Elk Grove or down the river to Courtland and see nothing but 'floaters' -- the pins were out of the (cross) arms and the arms would be all split."
About 3,000 customers were waiting for electric service, and more were added to the waiting list each day. A nationwide shortage of skilled linemen meant that many of SMUD's new employees needed training. Only a few of the newly hired employees had any electrical expertise. Postwar shortages of cars, homes, trucks and materials needed for national defense, such as the copper used to make distribution lines, compounded the situation.
Working in rented rooms on K Street and in sweltering tin Quonset huts on 59th Street, SMUD employees rose to the challenge. On Dec. 31, 1946, with little fanfare and no dimming of the lights, SMUD began supplying electricity to Sacramento -- fulfilling the request voters had made 23 years earlier.