What happened: an open neutral on a multi-wire branch circuit (MWBC).
Here's the sequence:
- Improper MWBC setup: The two 20A single-pole breakers in slots 3 and 5 are on the same leg (both A or both B phase). A proper MWBC requires the two hots to be on opposite legs (one on A, one on B) so the neutral carries only the difference in current between the two circuits.
- Neutral overload: Because both breakers are on the same leg, the neutral carries the sum of both circuit currents instead of the difference. If both circuits were drawing near 20A simultaneously, the neutral would be carrying 40A on a #12 conductor—well beyond its 20A rating.
- Overheated neutral: The #12 neutral couldn't handle the overload, causing it to overheat. This led to the scorched wire at the panel and the melted wire nut in the kitchen ceiling box.
- Why breakers didn't trip: Standard single-pole breakers only monitor current on their own hot leg. Since the neutral current wasn't flowing through either breaker, neither saw an overcurrent condition. The breakers only protect against hot-to-neutral or hot-to-ground faults on their individual circuits.
Fix: Install a common-trip double-pole breaker (or use a handle tie on adjacent breakers on opposite legs) to properly create the MWBC. This ensures the neutral only carries unbalanced current and provides proper overcurrent protection for the shared neutral.
Safety note: This is a fire hazard. Turn off both breakers and correct the setup before restoring power.