MADISON, Wis. -- One in every 10 homes in the Madison area has an electric panel made by Federal Pacific. Madison resident Kate Burr just found out her circuit breaker couldn't handle the new air conditioner. Then, she learned why.

"I'm told we have a potential problem," she said. "There is a potential fire hazard that could be associated with this particular panel."

The panel is a Federal Pacific "Stab-Lock."

Defected ones have black marks around the breakers, and there are melted pieces on others. Luckily, many of them have been replaced before a full-blown fire.

"These panels are a latent hazard and don't operate as (they) are supposed to," said electrician Dale Luhman.

Luhman works for Mr. Sparky Electrical Service.

"On the Stab-Lock, the circuit breakers fit (awkwardly) and a part burns right off," said Luhman.

Luhman has seen the potential hazard of the old panels, and said the concern is that only half the breakers trip when overloaded, and only half of the time.

"You could have a red-hot wire in the wall that you can't see," said Luhman. "It could be there long enough to start your house on fire."

As the documentation about the panel indicates, few homeowners know they have a Federal Pacific panel. Often, it takes an inspection or a problem with the panel first.

Even fewer people realize that there's a potential risk for fire.

The Wisconsin department of consumer protection isn't even sure if there's possible recourse..

"I would not try and fix it myself," said Jim Rabbit of the State Department Of Consumer Protection. "I would get an electrician -- especially with these reports that this one brand is causing problems. We need to have someone comfortable around electricity to deal with that."

Back in Burr's basement, the entire panel is now replaced, and so is her sense of safety.

"Whether or not it would start on fire, I don't know," she said. "Maybe it would, maybe it wouldn't. But I'm not willing to take that chance."

While researching the story, WISC-TV discovered a class action lawsuit representing more than 400 homeowners in New Jersey. The superior court there already ruled that Federal Pacific violated the consumer fraud act.