Is it possible you are putting the water and chips in the wrong pans? the smaller pan is for the chips, and the larger pan for the water. The pan that sits directly on the burner is for the wood. The water does not ever boil in my smoker.
I have never had the water pan go dry in the 6+ years we have used our Masterbuilt smoker. switch around your chips and water.
An electric smoker does not make as much smoke as a wood smoker. The smokey flavor is not as intense with any electric smoker.
We chop up our own little "chunks" of wood or use broken up sticks and do not use the powdery chips at all. A lot more smoke that way!!
Hope this helps.