This is preventing things like Project Red Insulated Wire from being used to control generators.

Also, a minor related issue is that the block doesn't seem to have the proper traits that let a framed insulated wire connect to it, so you have to use a regular one. Not sure if that's something easily fixed or not.

They need signal getting to the block, rather than adjacent blocks to make compact builds easier without worrying about crosstalk.

I was missing a flag to allow redstone connections, this is now fixed which should make PR wires work correctly - http://i.imgur.com/GpDd2Ly.png

Try this build - http://jenkins.bdew.net/job/generators-1.7.10/92/artifact/build/libs/generators-0.9.16.92-mc1.7.10.jar

Issue fixed! Will close with this comment.