Our 15' Whaler has a 2003 40HP 2 stroke hanging on the back. This past weekend my son complained that the motor would not start. I checked, and got the engine running, but needed the fast idle to keep it going. Pulled off the cowl and saw that there had been a fire under the cowl

The voltage regulator was melted and had blown out in the center. There were melted wires around the regulator, melted insulation/sound padding under the cowl, and black soot over everything.
Took the motor to my Merc mechanic, and he confirmed the regulator had blown. Claimed he has seen it three times before. Said it was lucky the fire put itself out. Parts will be over $500, and labor will be several hundred dollars
I just recently installed an EXIDE AGM battery on the boat. Asked the mechanic if this may have caused the problem, and he did not feel that would have contributed to the regulator blowing. Anyone have a problem with regulator catching fire? Makes me wonder if I want my kids running this motor, which to be honest has not been the most reliable considering its age and amount of use it gets. This is my third major repair on a motor with less than 200HRS.