I've been running into an issue where the car is running perfectly normal, then suddenly loses power to the point of almost stalling out. It also triggers the SES light. I haven't had a chance to pull codes yet, but I decided to check around the coil and module, as I've had them fail on previous LT1's. upon spraying with water, the coil wire arcs on the water pump and on a section of the coil's wiring harness. Thinking I had a bad coil wire, I tossed on a used Accel 8mm I had from another motor. Did the water test again and got arcing in the same places. Just for the hell of it, I put the tip of a screwdriver near an area that wasn't arcing, and it arced to the screwdriver as well.
My question is whether or not ANY arcing is normal or permissible in the area I described. If not, could this be a possible cause of the sudden, violent loss of power I'm experiencing?

 

There should never be any arcing.

 

Start checking plug wires.