What does the non-threaded post at the end of the pen do? It is loose but Auto Zone tested it okay. Can I just put a new grommet in it?Alternator.jpg

 

I don't know what that post is for but is that the alternator you are going to use?
The battery terminal insulation is melted pretty bad which means that it is loose and that is causing a bad connection at the rectifier and generating a lot of heat.
Get a anther alternator, if you use this one you are looking for trouble.
Joe

 

The nut on the threaded stud was loose, causing the short & the heat. Already replaced washers!! The post is a grounding post connected inside. The grommets were replaced & all is fine. Thanks anyway

 

I think that small stud is supposed to be threaded and that is where you attach the plastic clamp to hold the ALT harness.

 

It is a single phase AC tap. Used mostly on industrial applications for things like an Hour meter or choke. It is not needed for you car.