Thanks for the clarification. Our home inspector's report calls it a "furnace". So we assumed it was a furnace. I believe the previous homeowner (handyman) installed it. The garage is heated - maybe that's why it's there? Thanks for the help. We've contacted a licensed plumber who will fix the problem. I just wish the inspector brought this unsafe situation to our attention before we bought the house and we would have had the previous owner fix it. That's what I paid him for.