Federal Pacific Electric (FPE) was a popular manufacturer of service panels and breakers from the mid-1950s until the early 1980s. Several problems are associated with their products.
The circuit breakers may fail to trip during an overload situation, and may not cut power when turned off. An investigation by the Consumer Products Safety Commission revealed that up to 65% of FPE breakers that were tested failed to trip when required to do so. Failure to trip can result in a fire, property damage or personal injury. In Docket #L-2904-97, as part of a class action, the Superior Court of New Jersey determined that "FPE cheated during its testing of circuit breakers in order to obtain Underwriters Laboratories (UL) approval."
There is less space in the panel than in modern equipment. The result is crowding of the wires, difficulty in viewing all of the terminals, and inadequate space for bending wires.
The bus bars on several FPE models were set on springs, with a depth adjustment that enabled the position of the breakers to be moved forward or backward. Current code 
requires the bus bars to be rigidly mounted to prevent the entire bus from moving when a single breaker handle is operated.
Since 1984, the National Electric Code requires breakers that operate with their handles in a vertical position must be on when in the up position and off in the down position. FPE made some equipment that was on in the down position. The result being that the word “ON” showed on the breakers upside down and spelled “NO.”
An inherent design flaw with FPE Stablok breakers is that they attach loosely to the bus bar and with a small contact area. The lack of contact pressure and the small contact area can combine to produce arcing and overheating. The arcing occurs at the back of the breakers and can't be seen without removing them.
Replacement breakers for FPE panels are expensive ($20-$90) and some don't even bear a UL listing.
The recommended remedy for the owner of a home served by Federal Pacific Electric products is replacement of the panel and breakers by a qualified electrician.
More information on Federal Pacific Electric service panels is available on the Internet at www.inspect-ny.com/fpe/fpepanel.htm.
