The TPS(throttle position sensor) or IAC(idle air control) sensor are for the actual RPM of the engine, is the engine idle below 600rpm?
An alternator puts out less voltage at idle that is normal, but the dash board meter shouldn't go up and down like that.
I would first get a volt meter(dash gauge could be the problem).
With key off check battery voltage, should be about an hour or so after shutting off engine
12.7v is a fairly new battery
12.4v is a battery at 50%, so should be replaced.
Start engine with lights, fans and stereo off, battery voltage should go up to 13.6v to 14.6v.
Raise RPM to about 2,000rpm, voltage should increase a little, but never over 15v
Let it idle again and start turning on things, lights, check voltage, should drop then come back up, that's the voltage regulator working, it detects a draw by the drop in voltage and adds more.
With everything on, the battery voltage should be at 13.5v at the lowest.
If it's lower then battery is bad or alternator is too small for your electrical needs.
Now check if the volt meter does the same as your in dash meter, jumps up and down when you change RPM.
Here is a wiring diagram for your charging system
http://www.therangerstation.com/tech_library/EDiagrams/files/Diagram_charging_1991_2.JPG
The dash gauge gets power from the key then powers the alternators voltage sensing circuit.
Make sure all the alternator wires are clean and tight, sometimes the connector wires get frayed and are only holding on by a thread, this would reduce the voltage the alt can produce