Nords - your "lefty loosey" made me grin.
"Lefty loosey" is a nuclear engineering technical term used for the challenge of training Navy ensigns. We've been developing that highly sophisticated vocabulary for over 50 years now. For example an advanced mechanical fastener with a left-handed thread would be "righty roosey". But most regulators use a right-handed thread.
No doubt I'm going to sound like an idiot here, but I don't think we have a pressure regulator on our system. The flow meter (installed by the utility a year & a half ago) is for usage recording/billing purposes. I'm lead to believe that all it does is record usage. If it does have some kind of sneaky regulator, why would it stop functioning when the power is off?
We did cut our main power to test if the issue (as regards the electricity/pressure weirdness) was something in our house. There was no difference to the water pressure when only our power was off.
Will call utility company and see what I can find out.
I'm using the word "regulator" to indicate a device that maintains something like water pressure. Regulators have been around long before electricity, and mechanical regulators have been around for centuries. It has nothing to do with your flow meter, and I didn't even use those words in my first response. The utility meter is a completely separate device, and they don't want to be anywhere near the customer's ragged regulator. Tomorrow they're probably going to suggest that their flowmeter is fine but that your regulator sucks, although they may use more tactful terms.
You're looking for something like one of these:
http://www.poway-plumbers.com/wp-content/uploads/2010/01/ar1237333838700922.jpgThey're made out of brass, but sometimes they get painted or otherwise camouflaged. It might be inside your garage or your utility room, it might be in your basement, or it might be outside in a box below grade level. You could start at the utility's water meter and see if you can trace the pipe into your house. The regulator should show up before you get to the water heater. If you live in a 20th-century planned neighborhood (houses built by a developer at about the same time, not one at a time over years or decades) then the houses were almost certainly built to a plumbing code which included water pressure regulators.
The regulator is completely mechanical and does not need electricity. The reason it seemed to be working so well when the power was off is because (1) some totally unrelated coincidence or (2) demand on the water system was greatly reduced (the power was out so nobody was taking showers in their dark bathrooms or doing laundry or able to run their lawn irrigation systems or cooking dinner or running water pumps in their factories) and street water pressure was high enough for even your regulator to have enough to work with. But as soon as the power came back on and people started using water again (as a byproduct of having electricity available to see what they were doing and to help do it) then the pressure at the street meter dropped and your regulator wasn't able to open itself up enough to raise the pressure in your house's water piping.
I've experienced all of the symptoms you've described, and I've fixed them by replacing the water pressure regulator.