Well, he wasn't able to come out today. So out of curiosity I pulled the fan out and popped the cover off of the side of the compressor that has 3 wires running to it. It was where I saw the smoke.
Before I even got the cover off the yellow wire came out of the side of the cover, it had apparently shorted and came loose.
Not sure what would cause it to do this, there was some dirt and debris inside the plastic cover.