The water heater quit working. I found that water supply was leaking so I tightened the connection and that fixed the leak. Now there is no power to the gas valve. I checked power at toggle switch and all is good. When looking at igniter I encountered water at the flame sensor and the insulation had deteriorated on the wire. The insulation around the water tank is saturated as well. Is there some kind of reset other than the hood reset?

The number you posted suggests a power vented water heater. These power vented water heaters are notoriously difficult to troubleshoot online (could take hours of back and forth typing and still not resolve the issue).

I suggest that you contact State industries directly...click on this link:

State Industries | Customer Service | Cross Reference Guide (http://www.statewaterheaters.com/services/customer_support/)

Finally, it is probably a good idea to shut the "hood reset", wait five minutes and then turn power back on...see if that resolves the issue, OK?

Good luck!

Mark