What kind of ice does your Ice-O-Matic machine make? Cubes, dice, or Pearl (nugget)?
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In any case, that amount of water consumption seems very high.
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If your machine is the type where water runs over the cubes and some freezes as it forms, you may be having an issue with slow ice formation. What’s the incoming water temperature to the unit–if it’s too high, you’ll experience an issue like that.
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As many issues with ice machines–is the unit clean and sanitized? Lime scale buildup on the evap plate will hinder its ability to freeze water.