Grounding Fire (almost) - Now What?

If that's the wire that runs from the alternator to the battery then definitely replace it .I would replace it with a 10 gauge wire as this is the wire that charges your battery. It doesn't have to be inside you wiring harness. If you want, run it alongside and tape it up to hide it.

This was a couple years back - I ended up re-wiring everything from bulkhead forward, and doing the alt bypass. Never an issue since. I got lucky.