Hi Richard, A few things to check, but, alas, no firm suggestion:
When did you last boost RPM a bit?? For just a few volts, right?? Just recently?
A few volts low can typically be the result of the need for a minor governor speed adjustment, but not 60 volts low. Thats sounds like an electrical component issue.
First thing to decide is it a voltage or RPM issue....,,,,,but just in case....
RPM
Did maybe something come loose (maybe a lock nut on the spring connection) there where you last adjusted, I presume a governor adjustment, and can you tell from the engine sound the genny is running at normal (1800?) RPM. If the genny is running slow, check for a spring at the governor speed adjustment...maybe it popped off or slipped? Exhaust sound outside is smooth....no missing, right?? Can't imagine all that voltage loss is an RPM issue, but not impossible.
VOLTAGE
I assume you are looking at a reliable ac voltage reading...always a good idea to double check the voltage reading if you have any doubt. And maybe also a good idea to restart and run the generator again to be sure the problem is still present...and not intermittent.
60 volts is just half of 120v, so maybe one of two circuit components has either gone bad or is disconnected, as from a broken wire....You could be getting a half have output instead of a full wave (smooth and continuous) sine wave output. You might be able to find that section of the ac circuit if you have the wiring diagram for the electrical end of the genny.
Question: Expurts...Nothing in the control box that could cause this,right? I can't recall anything on my own....different model Onan .....but fortunately I never had to work the ac specifically.
Good luck, let us know the final resolution.