That is the drainage for the condensed steam from the installation ....if you are bothered by the dropping ..just plug a tube ...and get it somewhere to be collected...it will not have to be covered for any any reason...it assures the well function of the installation ..other wise the whole condensed water (steams) will gather inside and damage it ..
No the bottom hole should not be plugged. the bottom hole is the drain for the condensation. If you plug that hole the water will fill up and damage the unit.
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I have another portable air conditioner (also refrigerated) and it has the bottom drain port plugged. The difference is that my Convair model has a second one with a hose attached (ie it has 2 outlets). I was under the impression that the unit reuses the excess water rather than expelling it.
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