There are three reasons for the holes:

* If you were to take apart an outlet and look at the contact wipers that the prongs slide into, you would find that they have have bumps on them. These bumps fit into the holes so that the outlet can grip the plug’s prongs more firmly. This detenting prevents the plug from slipping out of the socket due to the weight of the plug and cord. It also improves the contact between the plug and the outlet.

* Electrical devices can be "factory-sealed" or "locked-out" by the manufacturer or owner using a plastic tie or a small padlock that runs through one or both of the prong holes. Construction projects or industrial safety requirements may require this type of sealing. For example, a manufacturer might apply a plastic band through the hole and attach it to a tag that says, "You must do blah blah blah before plugging in this device." The user cannot plug in the device without removing the tag, so the user is sure to see the instructions.

* There also is a small savings in raw materials (metal) for the manufacturer of the actual plug prong. Every little bit helps!