Thanks, Dave and Robert, for your advice. Since my original posting, I have managed to extract the alternator and it was found to indeed be faulty. It is a Bosch part that can be rebuilt easily (most new ones are in fact, rebuilt), just find a good auto electric shop. Some advice to give thus far: the serpentine belt tension does NOT require the $12 special tool from Volvo. All one needs is a 1/2" to 3/4" rachet converter as the hole on the tensioner is 3/4". However, one needs to carefully move the black box in the engine compartment on the passenger-side to get the tool to fit. The P/S pump can be swung away and not disonnected and there are a few miserable bolts to get at before the actual alternator can be removed. All in all, a little patience and it was not that big of a job in the end.

Ted