Why These Panels Keep Coming Up
Federal Pacific Electric made electrical panels from the 1950s through the 1980s. They installed millions of them. In older neighborhoods, I might see three or four FPE panels in a single week of inspections.
The problem isn't the panels themselves. It's the Stab-Lok breakers inside them.
Breakers are supposed to trip when circuits draw too much current. That's their one job. Studies found that Stab-Lok breakers fail to trip at rates far higher than any other breaker on the market. Some studies put the failure rate at 25% or higher for double-pole breakers.
When breakers don't trip, wires overheat. Overheated wires start fires.
The Testing Controversy
Here's where it gets complicated. The Consumer Product Safety Commission investigated FPE panels twice. They never issued a recall. Some people interpret this as proof the panels are fine.
They're not.
The CPSC found evidence that FPE falsified testing data to get UL approval. They found significant failure rates in the breakers. The investigation stalled for procedural reasons, not because the panels were cleared. The commission's own staff recommended recall action that was never taken.
Jesse Aronstein, the engineer whose research drove most of the FPE investigation, documented his findings extensively. His testing showed failure rates that would be unacceptable for any other electrical equipment.
What I've Seen in Real Houses
My friend Dave, who's been an electrician for 30 years, keeps a collection of burned FPE breakers in his shop. He shows them to customers who are on the fence about replacement. The melted plastic and charred contacts make the argument better than any statistics.
"Most of them never fail," he told me once. "But when they do fail, they fail dangerous."
I inspected a house last spring where the homeowner had lived with an FPE panel for 35 years without incident. No fires. No problems. He thought the whole thing was overblown.
Fair enough. Not every FPE panel will cause a fire. Not every smoker gets lung cancer either. But knowing the risk exists changes the calculation.
The Insurance Factor
My client Sarah called me three weeks after closing on a house with an FPE panel. She'd decided to keep it. The house was in her budget specifically because the panel scared off other buyers, and she figured she'd replace it eventually.
Then her insurance company found out.
They didn't cancel her policy. But they required an electrical inspection and gave her 30 days to replace the panel or face non-renewal. The discount she thought she got on the house disappeared into the emergency panel replacement.
"Nobody told me insurance would care," she said.
I felt bad. I'd mentioned insurance in passing during the inspection, but I should have made it a bigger point. Not every insurance company has the same policy, but enough of them care about FPE panels that it's worth checking before you close.
The Replacement Decision
Replacing an electrical panel isn't cheap. The quotes I see from electricians in my area range from $1,800 to $3,500 depending on panel size and installation complexity. Older homes with outdated wiring sometimes need additional work.
My neighbor Kevin got a quote for $2,400. He called it highway robbery. Then he got three more quotes. They ranged from $2,200 to $2,800. Turns out the first electrician was actually reasonable.
The cheapest quote came from a guy who wasn't going to pull permits. Kevin almost went with him until I asked what would happen if there was ever a fire. Insurance adjusters check permits. Unpermitted electrical work can void coverage.
What Replacement Involves
A typical panel replacement takes half a day to a full day. The electrician disconnects utility power (or coordinates with the utility), removes the old panel, installs the new one, reconnects all the circuits, and tests everything.
Most replacements are straightforward. The complicated ones involve:
- Upgrading from 100-amp to 200-amp service (utility involvement)
- Moving the panel to a different location
- Dealing with outdated wiring that doesn't meet current code
- Replacing the service entrance cable
Get multiple quotes. Ask what's included. Make sure permits are pulled.
The Negotiation Angle
When buyers find an FPE panel during inspection, most sellers already know about it. They've been waiting for it to come up.
I've seen sellers handle this three ways. Some offer a credit equal to replacement cost. Some reduce the price. Some insist the panel is fine and refuse to negotiate.
The last group usually sits on the market longer.
If you're a buyer, get actual quotes from licensed electricians before asking for credits. A quote on paper carries more weight than "I read online it costs $2,500." Sellers respond better to documented numbers.
The Other Side of the Argument
Not everyone agrees that FPE panels need immediate replacement. I've talked to electricians who think the hysteria is overblown. Their argument: millions of these panels are still in service, and the actual fire rate is low.
They're not wrong about the numbers. The absolute risk for any individual panel is small. Most FPE panels will never cause a fire.
But the relative risk compared to other panels is the issue. If a manufacturer sold car brakes that failed at 25 times the normal rate, we wouldn't say "most cars stop fine." We'd recall the brakes.
That recall never happened with FPE, for reasons that have more to do with legal and procedural obstacles than with safety. The company went bankrupt. There's no entity to hold responsible or to fund a recall.
What I Recommend
I'm not an electrician. I'm a home inspector. My job is to describe conditions and educate clients, not to tell them what to do.
But if you ask my personal opinion? I wouldn't want an FPE panel in my own house.
The replacement cost is significant but not catastrophic. A couple thousand dollars is real money, but it's a one-time expense for peace of mind and improved insurance options. If you're buying a house with an FPE panel, factor that cost into your offer. If you already own one, start getting quotes.
My client from the beginning of this story ended up buying the house. She negotiated $2,500 off the price, got three electrician quotes, and had the panel replaced the week after closing. The electrician found two breakers that wouldn't trip at all when tested.
"Glad I didn't wait to find out the hard way," she told me.
Yeah. Me too.