Yes. There needs to be exactly one ground/neutral connection in the entire system, and the ATS is generally the place to do it. (250.30(A)(1) Exception 1 permits this.

NEC 250.30 will tell you what you need to know. Well, if you can decipher it at least- it's one of the most confusing codes to try to read. Why can't the NEC just use plain english?

[This message has been edited by SteveFehr (edited 01-30-2007).]