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Hi gang, ltnp!
I've just replaced my secondary battery in 'Easy Bake' my '81 E-150 panel Econoline w Duraspark II ignition. Over the years each time I move the primary battery to the secondary position I'm reminded by that yellow condensor wire dangling behind the headlight.
That's correct, it's a "condenser," although the proper name is "capacitor." The term "condenser" is obsolete. It's a noise suppression capacitor; its job is to keep transient noise from the ignition coil primary winding from feeding into the vehicle's electrical system, which ultimately can be audible through the radio.
There is no dangling wire in your picture. The capacitor grounds by snapping into the clip connected to one of the regulator mounting bolts. It makes a single connection to the vehicle's electrical system (via the YELLOW wire).
Sorry for the lack of clarity of the photo, the very bottom of the pic is the wire's end that's only just outside of the margin. So if it makes a single connection to the vehicle's electrical system (via the YELLOW wire), where is the corrrect place to connect that yellow wire. (sorry that this sounds redundant).
That is a yellow/white wire and it connects to the "A" terminal of the regulator. I can barely see "A" in the top right of your picture in the black area on the regulator plug.