It is more like if the cops get tipped off from someone, they could start an investigation and then they would see the meter report.
The utility company has no reason to rat you out, in fact if they do they know they will lose business so not much to worry about there.
When I was not legal I remember thinking I need to stay under 5K, I research a lot of shit and I try to do it pretty well when I do, and this number is stuck in my head from years ago.