Generator (neutral) grounding/bonding...

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shockking

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Location
Sacramento, CA
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engineer
Trying to settle an age old debate in the office... What is wrong with these arrangements? What code section is violated? What risk is introduced?

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Base case is the un-modified figure from Mike Holts, showing a generator and transfer switch with solidly bonded neutral.
Case 1 shows adding a ground rod at the transformer. Ground rod is only connected to the generator ground (not the neutral). The neutral is only bound to ground at the service panel.
Case 2 shows case 1 with the addition of a bonding jumper from generator neutral to new ground rod. There are two neutral-to-ground connections.
 
Also a violation of 250.24(A)(5)
Load-Side Grounding Connections. A grounded conductor shall not be connected to normally non–current-carrying metal parts of equipment, to equipment grounding conductor(s), or be reconnected to ground on the load side of the service disconnecting means except as otherwise permitted in this article.
 
Makes sense for 'case 2'.
What about 'case 1'? Is that what you mean about 250.24(A)(5)?
Case 1 at one time was a requirement from some generator manufacturers. If it is considered a auxiliary electrode per 250.54 there is no problem.

In case 2, you are connecting the grounded conductor to the grounding conductor and earth, a violation as noted in the wording and, a dkidd points out, it also introduces objectionable current flow.
 
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