There is suppose to be hot water in the water heater, right?

A local contractor installed a new furnace and water heater for me on 1/21/2013. The install appeared to go well. The furnace is keeping our house warm and the water heater runs without making crazy noise and it is producing hot water. All is perfect in the world, well not quite… While checking out the water heater (AO Smith GDHE-50) I noticed that the lower side connect was quite cold, the brass drain was very cold too.
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