It’s good to have your eyeballs where they are (connection points) but I see no problem with that. You’ll often see “rainbowing” on bus bars and other surfaces in panels. I’ve seen the question go around many times on message boards over the years and the smart sparkies say it’s no problem. That one is a bit curious in that it’s on the service neutral which shouldn’t have that much heat. Are lightening strikes common in the area?
That looks like an old installation with only three service conductors. Curious, but I don’t see a defect with the lug, although some other defects are present in the panel.
I agree with the others from what’s visible in the photo there isn’t an issue with the neutral terminal. Overall the panel looks pretty good although I don’t see a GEC but that could be terminated elsewhere upstream from the panel.
I know others will disagree with me, but I always make the observation that the ungrounded white conductors were not re-identified. It’s part CYA from the sparky who may want to throw me under the bus. But, it’s also about giving the client information.
It’s very likely that the conductors were also not re-identyfied at the other end of the circuit. In a world of DYI’ers, if the client decides to service the device or appliance at the other end, they may not realize the white conductor is not a neutral conductor.
Yes it’s a code requirement to re-identify the white conductor in a cable when being used as an ungrounded conductor but it hasn’t always been that way. For older installations it may not have been required when the panel was originally wired. If you’re mentioning modern standards then you’re probably good to go.
1999, from my understanding. This installation is within the current requirement, but it also depends on when the local AHJ adopted the requirement. In Indiana, we’re consistantly 10 years behind the eight ball. What I’m finding is that it’s probably the old timers and the apprentices trained by them that are not re-identifying white conductors.
Many old timers flat out dislike this requirement because it’s dumbing down the code to supposedly benefit people who shouldn’t be doing electrical work in the first place mainly DIYers and handymen. If you don’t know why the white wire is on the breaker you shouldn’t be working in the panel.
I generally don’t write it up and that has always been my thought process…. if you don’t know the wire attached directly to a circuit breaker is hot maybe a little Darwinism is needed. I’d also be happy to bring my Sharpie over if my buyer ever really got that upset.