XR6 Voltage Regulator Problem

[Iceman710]

2003 Mercury 150hp XR6

While cruising down the lake yesterday my engine overheat alarm sounded. I removed the shroud over the engine and discovered an electrical fire (no flames) so I quickly removed all wires from the battery and found someone to tow me back to shore.

This morning I removed the top Voltage Regulator and most of the melting and fire damage seems to be coming from inside the device but is concentrated around where the red wire plugs in to the red wire that runs up to the Harness Assembly. There does not appear to be any visible damage to the Stator or any other electrical device on the motor. The battery is only 2 months old. The only electrical change has been the addition of a automatic float switch for the bilge pump last week which I wired to the motor's battery. I haven't found any wires that are missing insulation around them except for the wires that melted. I assume the melting took place during the fire. There is also clear silicone-like goo inside the 2 connections that plug together on both voltage regulators (I don't know if that is normal or helpful).

Is it possible that this problem was caused by a faulty Voltage Regulator? Is this a common problem for Mercury outboards to have? I would appreciate any input and advice on what I should do to fix the problem.

thanks,
Paul

[EuropeanAM]

-Disconnect battery

-REPLACE BOTH VOLTAGE REGULATORS

-When reconnecting battery, ensure that ENGINE CABLE is installed FIRST, remaining lugs Largest to Smallest, and finish off the connection with a STAINLESS LOCKNUT (do NOT use wing-nuts).