kalanikaau
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Your neighbor has an installation that is not to code. The 2 valves create a closed system that relies very heavily on the proper operation of the T&P valve to prevent the water heater from launching through the roof.
Nice video to watch here... http://www.youtube.com/watch?v=JmJoyuUJj2Q
Gnatlee,
Bradford White Water heaters are only sold to licensed plumbers. Since your last water heater was installed I guarantee that there have been changes to the code regarding water heaters. Among those changes are FVIR, Low Nox and a few others. Bradford White IMHO is the best water heater on the market for the money and against many other brands like night and day. This is a gas water heater! Improper Installation can have serious ramifications for you and your family. If you are not a licensed plumber, please find one and ask him to install a Bradford White.
Jeez, I was going to install a shutoff valve on the hot side of the water heater also, but after watching the video, I think not........
Thankfully (I hope) T&P's are reliable devices