[QUOTE=treis]
The ground can be connected to the neutral, but it doesn’t necessarily have to. The point of the ground is that the hot always has a path back to neutral so that you don’t become that path. For example, if the hot somehow came into contact with the ungrounded metal chassis of a piece of equipment and you touched it, the current would flow through you to ground. On the other hand, if the chassis were grounded and the hot wire touched the chassis it would flow through the chassis to the ground and trip the circuit breaker.
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While this is true, it does not explain why the AC power system in your house is referenced to earth ground in the first place.
The question you need to start with is this: why is the secondary of the step down transformer (hanging out on the pole next to your house) referenced to earth ground?
(The transformer’s secondary has three wires, BTW: one wire goes to one end of the coil (Hot 1), the other wire goes to the other end of the coil (Hot 2), and a center tap. All three wires go to your house. The center tap is called neutral. And for some strange reason, the center tap is also connected to earth ground.)
When you first think about it, it sounds kinda dumb to connect the center tap (or any of the secondary wires) to earth ground. You can power your house just fine if the secondary were not referenced to earth ground, so why do it? At first glance, it seems like connecting the center tap to ground would actually make the situation *more * dangerous, since you are now guaranteeing there will be a potentially lethal voltage between Hot 1 and earth ground, and Hot 2 to earth ground. By *not * connecting the center tap to ground, there would *not * exist a lethal voltage between Hot 1 and earth ground, nor Hot 2 to earth ground, which means if you’re grounded (which is often the case) you won’t get shocked by touching Hot 1 or Hot 2.
Or so it seems. 
The reason we ground the secondary of the transformer is because, if we didn’t, the common-mode voltage of the secondary winding could float up to the primary voltage. This would not be a good thing, as you might image; while there would still be 120 VAC between each hot and the neutral line, there would be *thousands * of volts between each of the secondary lines and earth ground. :eek: And why would it float up? Because transformers do not exhibit perfect isolation; there’s always a little bit of leakage or coupling impedance between the primary and secondary windings.
So to fix this problem, we connect one of the secondary wires to earth ground. It really doesn’t matter which wire; you could connect Hot 1 to earth ground, for example, and it would solve the problem of having the secondary float up to the primary voltage. In all installations, however, we connect the center tap to earth ground. It’s a bit safer this way… if we connected Hot 1 to earth ground, there would be 240 VAC rms between Hot 2 and earth ground and 120 VAC rms between the center tap and earth ground. On the other hand, if we connect the center tap to earth ground, there would be 120 VAC rms between Hot 2 and earth ground and 120 VAC rms between Hot 1 and earth ground, which is safer. 