Voltage regulator smoking?

Why is the gage labeled 'Alt' when it really shows current to or from the battery?
If the battery is discharging when driving, then the engine is running on battery and something is wrong with the alternator circuit. Also if the charging increases with rpm like it did in your case, something is wrong with the alternator circuit.
I don't know if that's why they labled it "alternator gage" but its a good way to think about it.
ps.
In the shop manual they call it an ammeter.


I agree with the suggestions to get a factory service manual. The downloads from mymopar are fine.
I'm going to post a simplified diagram but you will learn it the best if you draw or trace your own.


1735692005091.png

The solid black circle is a welded junction joining the main circuits.
The alternator output (wire R6) feeds the connected circuits. This includes the battery when it needs recharging.
When the engine is off, or the alternator can't supply power, then the battery supplies power through the same junction.

Really important is to observe that these wires are all connected to the battery positive. In other words they are electrically HOT at all times (unless the battery is disconnected).
Q3 feeds two fuses in the fuse box. Anything connected to them can be turned on at any time (dome light, headlights, etc)
J2 is the run circuit. It feeds both the alternator's rotor and the engine's ignition.