Its not the alt. Mine has been doing this for a while now. Im pretty sure it has to do with the e brake switch. If I pull the e brake out then push it back in, it will shut off the lights. It very well could be the ground causing it but tbh I have the stock voltage gauge and so ill know if theres a problem with the alt.
I might look into it some days soon. Not really on the top of my list. Its just a 1st gen bug.