A B737-700 CAPT REFUSED AN ACFT AFTER AN EXTERNAL ELECTRICAL GND CONNECTOR BURNED AND MELTED THE EXTERNAL CONNECTOR RECEPTACLE.

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ACFT WAS DELIVERED TO US IN ZZZ WITH MEL ALREADY ON THE DISPATCH RELEASE. THE CAPT CAME OFF THE ACFT AND RPTED THAT THE GND PWR RECEPTACLE 'WAS ON FIRE' EARLIER IN THE DAY. HE SAID IT HAD SHOT A FIRE BALL OUT THE SIDE OF THE RECEPTACLE AT ANOTHER CITY EARLIER; EXHIBITING HVY SPARKING ALSO. EVEN WITH A STICKER SAYING; 'DO NOT USE' ON IT; GND CREWS IN ZZZ HOOKED UP TO IT CAUSING THE 'FIRE BALL' SITUATION AGAIN. AFTER I WENT DOWN TO THE RAMP; I OBSERVED A TOTALLY BURNED UP AND CHARRED GND RECEPTACLE; A MELTED AND RUINED PLUG WHICH HAD TO BE REPLACED; AND A STUNNED AND WORRIED GND CREW. I CALLED MAINT DUTY CTL AND TOLD THEM I HAD CONCERNS ABOUT FLYING THIS ACFT. I WAS TOLD BY OUR MAINT THAT WE WERE GOOD TO GO DUE TO MEL. DUE TO WHAT I OBSERVED; I WANTED CONTRACT TO CHK IT OUT; AND I CALLED CONTRACT AT THIS TIME. CONTRACT MAINT WAS TOLD BY OUR MECHS WHAT AND HOW TO CHK IT OUT. CONTRACT PERFORMED AN ELECTRICAL BYTE CHK AND RPTED EVERYTHING OK. COMPANY MAINT TOLD ME; 'YOU DO NOT HAVE AN 'ELEC' LIGHT AND IT PASSED A BYTE CHK SO EVERYTHING IS OK.' WELL; IN MY JUDGEMENT; EVERYTHING IS NOT OK. 1) WE HAVE AN ACFT WHICH WAS ON FIRE; AND EXHIBITING A FLAME FOR MANY TO SEE ON THE FUELING SIDE OF THE ACFT. 2) IT RUINED THE GND EQUIP AND COULD HAVE INJURED GND PERSONNEL. 3) THE TEMP WAS SO HOT IT BURNED; MELTED; AND SCARRED AN ELECTRICAL AREA OF THE ACFT. 4) ALL THIS LEAVES TOO MANY UNANSWERED QUESTIONS AS TO WHAT CAUSED THIS AND DID ANY DAMAGE OCCUR JUST BEHIND THIS PANEL WHICH WAS DAMAGED SO BADLY (DAMAGE THAT THE RESULT HAS NOT SURFACED YET). 5) COULD THIS HIGH TEMP HAVE TRAVELED INTO ANOTHER AREA OR COMPONENT DUE TO A FUSED RELAY OR OTHER HIDDEN PROB? 6) JUST BECAUSE THERE IS NO 'ELEC' LIGHT; AND THE BYTE CHK PERFORMS WELL DOES NOT MEAN WE SHOULD NOT USE JUDGEMENT AND COMMON SENSE AND GO THE CONSERVATIVE RTE. IN MY OPINION; IT WAS WRONG TO FLY THAT ACFT WITH PAX AFTER SUCH DAMAGE. WHEN I TELL COMPANY MAINT THAT AFTER TALKING TO ALL INVOLVED; I DO NOT FEEL COMFORTABLE FLYING THIS ACFT AND MAKE A PROFESSIONAL DECISION NOT TO; HOW SHOULD I FEEL/VIEW COMPANY MAINT GIVING THE ACFT TO ANOTHER COMPANY PLT TO FLY PAX TO ANOTHER CITY? CONTRACT MAINT WAS TOLD TO SPD TAPE OVER THE ENTIRE GND RECEPTACLE SO NO ONE COULD OPEN IT AGAIN. DUE TO THIS; THE CREW THAT FLEW THE ACFT NEVER GOT TO SEE THE DAMAGE UNDER THE TAPE. WHEN SOMETHING IS TAPED UP OR COVERED; IT LOOKS MUCH BETTER THAN BURNED AND MELTED. BEFORE I LEFT FOR ANOTHER ACFT; CONTRACT MAINT TOLD ME AND MY FO THAT HE THOUGHT THERE WERE MANY UNANSWERED QUESTIONS; AND COULD SEE WHY I WOULDN'T FLY IT. NO ONE COULD TELL ME WHY IT WAS DOING THIS. I'M NOT SURE WHY THIS ACFT WAS ALLOWED TO LEAVE THE PREVIOUS CITY AND I FEEL STRONGLY IT SHOULD NOT HAVE LEFT ZZZ. IF ANYTHING HAD OCCURRED WHILE FLYING THAT ACFT; HOW COULD WE EXPLAIN THAT IT WAS A GOOD IDEA? THE REASON FOR ME TO WRITE THIS IS THAT I FEEL OUR COMPANY'S PRIORITIES ON THIS DAY WERE: 1) EFFICIENCY; 2) SVC; 3) SAFETY. THE DIRECT OPPOSITE OF HOW I THOUGHT WE WANTED TO RUN COMPANY. I FEEL THE PROBS WE HAVE IN FLT OPS IN TERMS OF POOR LEADERSHIP AND NO COM; HAS DEGRADED CAPT AUTH EVEN MORE. PEOPLE AT COMPANY; NOT TO MENTION THE CAPT; ARE NOT LISTENED TO WITH TRUE RESPECT AND TRUST. THIS PROB STARTS AT THE VERY TOP.