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I'm thinking you want it to a switched source or you'd be causing a constant drain on the battery

Someone else will know more, I'm keeping an eye on this post. I too have a Denso alt. so I should know this stuff too.

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I'm going through this right now replacing the generator on my Massey tractor with a Denso alternator. You can jumper the sensing terminal to the output terminal. What you end up with is a 'one wire' alternator and the small current drain that one wire alternators have. If you connect the sensing terminal to a switched feed (ignition) then you have the best of both worlds, an internally regulated alternator without the constant current drain. The third terminal on the Denso is for a charging light. I'm not going to use that as the tractor has an ammeter.