The last few days I have noticed water in my utility room. My water heater is about 7 years old. As far as I know the valve has never been replaced (I've owned for 2 years). I am a single male so I don't use a ton of water. Shower daily, dishes/ laundry weekly. Would you think the old relief valve is the issue and it just needs replaced or some other issue?

Where is the water coming from? The T&P valve is on the side of the tank and should be piped outside or to a floor drain. If the water is coming from inside the heater, it most likely needs replacing. If water is coming from the T&P valve, it could be the valve or the main pressure regulator for the house. You will need to put a pressure gauge on the drain valve of the heater, tighten it and slowly open the drain valve. Should be a max of 60#. If pressure is 80+ you can try adjusting the main valve, with a water tap open, and if the pressure doesn't go down, replace the valve. Also check to see what the water temp is. Should not exceed 125F

It appears to be starting near the T&P drain pipe. Currently the pipe runs to the floor and stops (no drain). In researching to determine my issue I see this is not right and will be working on a fix for that. I will also check temp settings and pressure.

Sounds like you water heater is shot... ;)

If you can access the combustion chamber (gas heater) and the chamber is wet then the heater is done and will need to be replaced. If you have an electric water heater, shut off the power to the heater and then remove the lower access panel and see if you can see any water inside the panel... if so, most likely you'll need a new heater.

More questions? Let us know, OK?

Mark

Please note that when adjusting the pressure, it can only be done via the pressure regulator if you have one. Closing or opening a water main vale has no effect on pressure, only volume.

A close inspection may show that you have a repairable leak. We have to rely on you to do the inspection, though. Check all of the connections for the water supplies where they enter the tank as well as where the T&P valve screws in. A 7 year old tank that hasn't been maintained may still be salvaged if the tank body is still in good shape. If you have the skills to replace the tank yourself, you may also have the skills to repair and maintain the tank. If you are not a DIYer maybe call a reputable plumber to see if it can be saved.
Regardless of which way you go (repair or replace) a few things to keep in mind to prolong the life of your tank.
1. If a backflow device or regulator or both exist on your water service, have a thermal expansion tank properly installed and pressurized.
2. If you have a water softener your anode will probably need to be replaced every 2-3 years to protect the tank body.
3. Flush the tank annually or as per manufacturer's recommendation. Download or order a new owner's manual if you need to.
4. Check the T&P valve every 6 months or manuf. Recommendation for safety.
5. Avoid excessively high temperatures. Most recommendations are between 120 and 130 degrees fahrenheit. This reduces the risk of scalding, but also reduces wear on the tank by over-firing. I DO NOT recommend turning the thermostat below 120 degrees F.
6. Inspect or have a plumber inspect the tank annually to see if the valves and connections to the tank are leaking or showing signs of corrosion. Sometime it is a leak on a connection or near by that promotes early corrosion of the tank. An ounce of prevention is worth up to $1,000 worth of cure.

Missed you post from today when I submitted my recommendations. Be sure to check the temperature and pressure since they are the reasons for having the valve on the tank to see if they are within normal limits.
Don't let it just drip and drain for days/weeks until it stops on its own. Sometimes once people realize it is the T&P they will just let it drip until it scales itself shut. Then they will think that it fixed itself. Meanwhile there is a safety issue. If pressure is high or thermal expansion-remedy it. If temperature is high or thermostat is broken-fix it. If T&P valve is bad-replace it.
Keep us posted.

Check the temperature with a thermometer at the kitchen sink. A meat thermometer is preferred for accuracy and temperature limits. Pressure gauges that connect to hose valves are available at most big box stores and are a valuable tool. Check temp at the sink and attach gauge to a hose connection. If temperatre is okay and pressure is normal, then change T&P valve. You have just learned some valuable skills that will save you money in the future. Depending on your home pressure should be between 45 and 65 psi. Temperature limits have been posted.