Dear Mr. Engebretson:
Thank you for writing to me. It seems like that is a drain hose. I have seen them leak after water freezes in them in the winter and cracks the housing. If that is the case you can buy a kit to replace that PVC assembly. All the parts should be available at a plumbing supply store or you can call our office and they will get you the factory replacement parts also.
In the event that your unit is still under warranty please contact the factory at 1 800 260 2758 for service.
1 800 741 9956