Grounded (3 Prong) -VS- Non-Grounded (2 Prong) Receptacles.Whoever has ever worked on or lived in a house that was built prior to the Mid 1960's has seen them, the old "2 prong" non-grounded receptacles.How many of these have you changed out with new "3 Prong" grounded receptacles to be able to accommodate a fresh appliance or computer?How many times perhaps you have failed a Mechanical inspection due to a receptacle having an "Open Ground"So what's the big deal anyway?An equipment grounding conductor installed in an electrical branch circuit was created to provide a continuous way to facilitate the movement of electrical current due to 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 a 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 use an appliance that under the right circumstances might lead to serious injury or death to an unsuspecting user.Since most homes which were built prior to the Mid 1960's were wired utilizing an un-grounded electrical system, the utilization of "2 prong" non-grounded receptacles was all that has been required.Changes to the National Electric Code that started requiring the usage 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 support just how we live today.So what's the right way to do this?How do you update the outlets in your house, without creating a potential electrocution hazard?We all know that rewiring an entire home can be quite expensive and may potentially cause severe secondary harm 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 where 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 used.1) A non-grounded (2 Prong) receptacle will be permitted to be replaced with a Ground Fault Circuit Interrupter (GFCI) receptacle. These receptacles shall 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, where supplied through a GFCI device. These receptacles shall be marked as " No Equipment Ground" and "GFCI Protected". Again this is usually done by usage of small stickers placed on the receptacle cover plate.A GFCI device may be either a circuit breaker or receptacle. GFCI Devices are designed with 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"), as compared with the volume of current being drawn from the device on the black- ungrounded circuit conductor ( "Hot"). If the amount of current returning varies by more than the amount allowable by safety standards then your GFCI will open, thus cutting the flow of current through the circuit.You should note when employing using GFCI protection as outlined in option #2 above, protection could be achieved by using either a GFCI receptacle, or perhaps a GFCI Breaker.Depending on the type of electrical service in the home, Fuses or Breakers and the wiring method used when the home was wired, it is often more cost effective to set up GFCI breakers to protect the complete circuit than it really is to spend several hours of labor trying to separate out individual devices for protection.One thing to keep in mind any time you are installing a GFCI device of any kind, is that the contents of refrigerators and chest freezer can be lost if plugged into a GFCI protected receptacle that trips and is not reset before the contents thaw.As always every home differs, as is every wiring system. It is best to consult with a licensed Master Electrician prior to starting any electrical project.Article Provided by Kim Tucker with MAREI from information provided by Bill Vaughn, Accessible Electric Inc., (913)-915-0838. Person in MAREI. MAREI works exclusively with real estate investors who want to learn and become successful at real estate investing. Have more information