Grounded (3 Prong) -VS- Non-Grounded (2 Prong) Receptacles.Anyone who has ever done or lived in a home that was built before the Mid 1960's has seen them, the old "2 prong" non-grounded receptacles.How many of these perhaps you have changed out with new "3 Prong" grounded receptacles so that you can accommodate a fresh appliance or computer?How many times perhaps you have failed a Mechanical inspection because of receptacle with an "Open Ground"So what's the big deal anyway?An equipment grounding conductor installed within an electrical branch circuit was created to provide a continuous path to facilitate the movement of electrical current caused by surges and or faults - to earth via the homes grounding system.If an appliance which has damaged wiring is connected to a supposed "Grounded" (3 Prong) receptacle, instead following the assumed grounding path back again to earth, fault or surge currents could be passed through the user.By installing a "Grounded" (3 Prong) receptacle on an un-grounded electrical branch circuit, you may facilitate the utilization an appliance that beneath the right circumstances could cause serious injury or death to an unsuspecting user.Since most homes that were built prior to the Mid 1960's were wired using an un-grounded electrical system, the application of "2 prong" non-grounded receptacles was all that was required.Changes to the National Electric Code that started requiring the use of an equipment grounding conductor in all branch circuits and the introduction of sensitive gadgets into our homes over the last40 years, have driven the necessity to install Grounded type (3 Prong) receptacles to accommodate just how we live today.So what's the proper way to do this?How will you update the outlets at home, without developing a potential electrocution hazard?Everybody knows that rewiring a whole home can be very expensive and can potentially cause severe secondary damage to the homes finish.Fortunately the National Electric Code affords us a few less drastic options.Article 406 of the 2008 NEC says that only w here connection to an equipment grounding conductor can be done shall a Grounded (3 Prong) receptacle be installed, unless one of many following replacement methods are employed.1) A non-grounded (2 Prong) receptacle will be allowed to be replaced with a Ground Fault Circuit Interrupter (GFCI) receptacle. These receptacles will be marked " No Equipment Ground". This marking is usually done by use of a small sticker positioned on the receptacle cover plate.2) A non-grounded (2 Prong) receptacle will be permitted to be replaced with a grounded (3 Prong) receptacle, w here supplied through a GFCI device. These receptacles will be marked as " No Equipment Ground" and "GFCI Protected". Again normally, this is done by usage of small stickers placed on the receptacle cover plate.A GFCI device could be the circuit breaker or receptacle. GFCI Devices are designed having an internal circuit that measures the volume of electrical current returning on the white- grounded circuit conductor ( or what's often referred to as the "Neutral"), compared to how much current being drawn from these devices on the black- ungrounded circuit conductor ( "Hot"). If the quantity of current returning varies by a lot more than the amount allowable by safety standards then your GFCI will open, thus cutting the flow of current through the circuit.It is important to note when employing using GFCI protection as outlined in option #2 above, protection could be achieved by using either a GFCI receptacle, or a GFCI Breaker.Depending on the kind of electrical service in the home, Fuses or Breakers and the wiring method used when the home was initially wired, it is more cost effective to set up GFCI breakers to protect the entire circuit than it is to spend a long time of labor attempting to separate out individual devices for protection.One thing to keep in mind any time you are installing a GFCI device of any sort, is that the contents of refrigerators and chest freezer can be lost if connected to a GFCI protected receptacle that trips and isn't reset prior to the contents thaw.As always every home differs, as is every wiring system. It is best to consult with a licensed Master Electrician before starting any electrical project.Article Provided by Kim Tucker with MAREI from information supplied by Bill Vaughn, Accessible Electric Inc., (913)-915-0838. Person in MAREI. MAREI works exclusively with property investors who would like to learn and become successful at real estate investing. Have more information