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You are correct. The nut on top of the canister is loosened and the canister drops down. First - disconnect the electrical pigtail for the water sensor (at the bottom of the canister. Second - turn the water fuel bleed valve (yellow) near the top front of the canister to control spillage when you do remove the canister. The new filter comes with new O ring seals. Moisten with claean diesel and install. Add clean diesel to the newly installed filter and you will have an easier start up.
It is located on the driver's side of the engine. You will see a yellow handle for the fuel/water separator drain valve at the bottom of the filter housing. The black plastic top unscrews and the filter can be pulled out.
Please clarify the "loosing power" does it lose power and shut down or does it loose power but will idle? Your Cummins is electronically controlled so oil condition is important, fuel leaks, oil leaks, leaks in the air ducting between the turbo and the intake, sensors, water in the fuel. Do you get an engine light when this trouble happens? Dodge uses a lift pump to carry fuel to the the injection pump, is it working?
fuel filter housing on driver side of motor. need the correct size of socket to remove the lid. unscrew lid and pull straight up to remove filter. remove old filter from lid and install new filter and seal. drain old fuel/water from housing. then reinstall filter into housing. tigthten lid then make sure the petcock is closed from draining it earlier. bump the starter a couple times to fill the filter housing then start engine. clean any spilled fuel and your done