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How the alternator supplies and gets power:
When the engine is running the ignition needs power.
Current flows from the high voltage power supply, the alternator, through the key switch to the ignition.
The voltage regulator senses the voltage in the blue wire (labeled J2B).
Inside the regulator is basically a switch. Opening and closing the switch makes and breaks power to create the electromagnetic field inside the alternator.
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More about the isolated-field alternator here:
Identifying Chrysler Alternators (1960-1976)