He was using a handsaw that the plumbers use to cut PVC. It has a plastic handle that would have provided some protection. But there were no arc burns on the blade. Strange.
The circuit was never under any significant load. At the time it first tripped the only load were two alarm clocks. The greatest load that it ever received was from the motors on an adjustable bed.
The arcing was between, as best as we could determine, a hot leg and ground. This was a four wire conductor - two hot, one neutral and one ground. There is a possibility that neutral was involved too as some of the insulation was damaged but we didn't see any arc burns on the neutral conductor.