Re: GROUNDING AND BONDING SDS
As the other two stated you would create a parallel path for load current to flow.
I have seen exception 1 exercised in a couple of circumstances. One is where a transformer was located in one building, and the secondary was feeding an adjacent building where there was no common ground electrode between the two structures. The other application is similar where a generator was located adjacent to the building and not sharing a common electrode.
Basically it is identical to a utility transformer where the utility has it?s own electrode, and the premise has it?s own separate electrode. Earth is the only common path, and is not a good conductor, so the majority of the load current flows on the grounded conductor.