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PhaseShift:
You have indicated you are an electrical engineer. So the following should be natural for you.
Draw an equivalent circuit as follows:
A center tapped transformer secondary, 120-0-120 V. Connect the center tap to a ground rod at the transformer, and to a neutral wire to the main panel. Two hot wires to the main panel. Obviously there is a meter in the path. Maybe an outside disconnect, and/or maybe a main breaker or fuses in the panel as a disconnect. There is an earth ground at the main panel from the neutral and EGC bus. Some locations there may be slight variations on some of these details.
Neglect inductance and assume resistance for the transformer secondary and all wiring and devices.
Assume 0.03 ohms for each half of the secondary (120*0.05/200=0.03). If you know more about the transformer, then a better estimate is possible.
Assume 0.01 ohms for each hot and neutral wire. For your real application you should make an estimated calculation of the resistance. Neglect the meter, main breaker, and main panel bus bars.
Assume 25 ohms from transformer center tap to the main panel neutral via an earth ground path. This could be much higher or lower. You need information on your soil type and other factors to make a better estimate, or make measurements.
Assume equal size wires for hot, neutral, and EGC on any branch circuit. #14 wire is 2.53 ohms/1000 ft at room temperature. And #12 is 1.59 ohms/1000 ft.
Consider a 50 ft run of #12. The resistance is 0.05*1.59 = 0.08 ohms.
Often times you do not have an open neutral, but rather one with a higher than normal resistance and likely varying. Sometimes it may be arcing.
If a 12 A 120 test (10 ohms, a 1500 W electric heater) is done on the above assumptions and all wires and connections are good, then the change in voltage at the end of the 50 ft branch circuit would be about (0.03+(2*0.01)+(2*0.08))*12 = 0.21*12 = 2.5 V. The neutral voltage drop from transformer center tap to main panel is about 0.01*12 = 0.12 V (120 MV). The neutral drop from the main panel to the end of the 50 ft branch circuit is 0.08*12 = 0.96 V.
If there was a truly an open neutral wire from the transformer to the main panel, then that path now follows the ground path and the neutral resistance is 25 ohms from the above assumption. Assuming no load on the other phase, then the 12 A load (10 ohms) in series with 25 ohms produces a voltage across the load of (10/35)*120 = 35 V.
These neutral drops can be directly measured with some long test leads. An extension cord is a useful test lead extender. At the transformer a direct connection to the ground rod is a fairly good point to reference the transformer center tap. Interior to the house any EGC may be a good reference to the main panel neutral bus provided there is no current flowing in the EGC.
Knowing what the voltage drops on a good circuit are allows you to more easily locate the problem on the circuit when it is bad. In some cases it may be difficult to isolate the problem without sufficient instrumentation of the correct type.
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