The old meters are recycled.  Any newer, electronic meters utilities replace (such as solid state meters and OMR – offsite meter read – meters) are refurbished, tested and recycled back into the meter population until smart meters are installed in the area in which they are recycled. The older, electromechanical (dial) meters that are replaced are dismantled and all their components – such as aluminum, copper, glass et cetera – recycled.

No, it is illegal and unsafe to do so. Other than some limited exceptions the utility owns and maintains the metering equipment. This includes electric and gas meters used for measurement and billing, and other equipment such as transformers on the ground or on a pole.  Removing or tampering with the property creates a safety issue, which may result in termination of service, and is considered a crime. If done improperly it can result in serious injury or death. Licensed electricians must contact utilities when work requires a meter to be removed, reset, or the power cut or reconnected at a customer premise. 

A map of smart meter installations by state provided by the Institute for Electric Efficiency illustrates progress. As of May 2012, 36 million smart meters have been installed across the country. By 2015, approximately 65 million smart meters are expected to be installed—that’s more than half of all U.S. households.