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Thanks to all who responded. I have another twist on this situation as I was going to install the expansion tank. It seems as though the PRV is failing to reduce pressure somehow. My previous readings were wrong. The pressure measures 90 PSI from garden spigot. I changed the setting on the PRV...

Thanks, that is what two plumbers told me so far. They have not seen this before. What would be the risk if I take it out from the picture and simply rely on the pressure relief valve?

Thanks both for the quick response. See answers to your questions. If TECV is releasing water all the time, would the expansion tank gets filled up quickly? I guess I am assuming releasing some water would reduce pressure until it builds up again. But that is not happening with the valve...

I have a water heater which has a pressure relief valve, and a Thermal Expansion Control Valve (TECV). The TECV sets on the incoming cold water line just before the water heater and cold line is connected directly to water main. Last month the TECV started to release water through the small...