The proposal to allow the Sacramento Municipal Utility District to annex its neighbors to the west in Yolo County was defeated Tuesday. Approval of three separate measures was a prerequisite to a SMUD takeover of the 77,000 Pacific Gas & Electric customers in the cities of Davis, Woodland, and West Sacramento and parts of Yolo County. Nearly 62 percent of Sacramento voters rejected the proposal. In Yolo County, the votes were far closer. Of the two ballot measures addressing the issue, one garnered 50.6 percent of the vote, while the second one was rejected by 49.6 percent of the voters. Davis, which attempted to create a municipal utility district earlier this decade, was the only city to overwhelmingly approve the move. "We are excited about the future, and commit that our customers in Yolo County and throughout the service territory will be delighted with the transformed PG&E," stated Nancy McFadden, PG&E vice-president of government relations. "We are disappointed for Yolo communities, but our existing customers have always been our top priority, and we respect their wishes," said SMUD board president Genevieve Shiroma. PG&E spent more than $11 million to keep SMUD outside its territory. - E. McC.