<PAGE>   1
================================================================================



                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                          ----------------------------

                                   FORM 10-QSB

  (Mark One)
  [X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
         FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001

                                       or

  [  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934
        For the transition period from              to
                                       ------------

                         Commission File Number 0-19793

                           METRETEK TECHNOLOGIES, INC.
        (Exact name of small business issuer as specified in its charter)


               DELAWARE                                             84-1169358
   (State or other jurisdiction of                            (I.R.S. Employer
    incorporation or organization)                         Identification No.)

600 Seventeenth Street, Suite 800 North
          Denver, Colorado                                               80202
(Address of principal executive offices)                            (Zip code)

                                  (303)416-9200
                (Issuer's telephone number, including area code)


         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

                                 Yes X  No
                                    ---    ---

         As of May 2, 2001 there were 6,077,074 shares of the issuer's Common
Stock outstanding.

         Transitional Small Business Disclosure Format

                                 Yes    No  X
                                    ---    ---

================================================================================
<PAGE>   2




                           METRETEK TECHNOLOGIES, INC.

                                   FORM 10-QSB
                                TABLE OF CONTENTS

                                                                          PAGE

PART I.  FINANCIAL INFORMATION

Item 1.           Financial Statements

                  Unaudited Consolidated Balance Sheets -
                           March 31, 2001 and December 31, 2000             3

                  Unaudited Consolidated Statements of Operations -
                           For the Three Months Ended March 31, 2001 and
                           March 31, 2000                                   5

                  Unaudited Consolidated Statements of Cash Flows -
                           For the Three Months Ended March 31, 2001 and
                           March 31, 2000                                   6

                  Notes to Unaudited Consolidated Financial Statements      7

Item 2.           Management's Discussion and Analysis of Financial
                           Condition and Results of Operations             11


PART II.          OTHER INFORMATION

Item 6.           Exhibits                                                 21

Signatures                                                                 22



                                       2
<PAGE>   3



                                     PART I.
                              FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

                  METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                        MARCH 31,     DECEMBER 31,
ASSETS                                                                     2001           2000
                                                                       -----------     -----------

<S>                                                                    <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents                                            $   872,422     $   468,813
  Trade receivables, less allowance for doubtful accounts
    of $548,403 and $548,153, respectively                               3,901,581       4,476,841
  Other receivables                                                         16,449           7,960
  Inventories                                                            3,665,920       3,226,995
  Net assets of discontinued operations                                    506,906         545,454
  Prepaid expenses and other current assets                                792,136         768,474
                                                                       -----------     -----------

      Total current assets                                               9,755,414       9,494,537
                                                                       -----------     -----------

PROPERTY, PLANT AND EQUIPMENT, AT COST
  Equipment                                                              4,372,312       4,391,990
  Vehicles                                                                 453,782         468,089
  Furniture and fixtures                                                   601,093         612,087
  Land, building and improvements                                          461,022         460,340
                                                                       -----------     -----------
      Total                                                              5,888,209       5,932,506
  Less accumulated depreciation                                          2,997,058       2,862,990
                                                                       -----------     -----------

      Property, plant and equipment, net                                 2,891,151       3,069,516
                                                                       -----------     -----------

OTHER ASSETS:
  Customer list (net of accumulated amortization of $3,512,495 and
    $3,401,183, respectively)                                            5,380,392       5,491,704
  Goodwill and other intangibles (net of accumulated amortization
    of $1,486,723 and $1,398,227, respectively)                          2,578,524       2,462,361
  Other assets                                                             275,923         277,773
                                                                       -----------     -----------

      Total other assets                                                 8,234,839       8,231,838
                                                                       -----------     -----------

TOTAL                                                                  $20,881,404     $20,795,891
                                                                       ===========     ===========
</TABLE>

See notes to unaudited consolidated financial statements.




                                       3
<PAGE>   4

                 METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                     MARCH 31,       DECEMBER 31,
LIABILITIES AND STOCKHOLDERS' EQUITY                                   2001              2000
                                                                   ------------      ------------

<S>                                                                <C>               <C>
CURRENT LIABILITIES:
  Accounts payable                                                 $  1,120,686      $    780,173
  Accrued and other liabilities                                       1,844,133         1,278,867
  Notes payable                                                       4,375,844         2,419,874
  Deposits and capital lease obligations                                194,757           207,058
                                                                   ------------      ------------

      Total current liabilities                                       7,535,420         4,685,972
                                                                   ------------      ------------

LONG-TERM NOTES PAYABLE                                                       -         1,929,759
                                                                   ------------      ------------

COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK - SERIES B,
  $.01 PAR VALUE; AUTHORIZED, 1,000,000 SHARES;
  7,000 ISSUED AND OUTSTANDING;
  REDEMPTION VALUE $1,000 PER SHARE                                   7,083,961         6,903,485
                                                                   ------------      ------------

STOCKHOLDERS' EQUITY:
  Redeemable preferred stock - Series A, $.01 par value;
    authorized, 1,000,000 shares; none issued and outstanding
  Redeemable preferred stock - Series C, $.01 par value;
    authorized, 500,000 shares; none issued and outstanding
  Common stock, $.01 par value; authorized, 25,000,000 shares;
    issued and outstanding, 5,908,067 shares                             59,081            59,081
  Additional paid-in-capital                                         54,875,634        54,814,659
  Accumulated other comprehensive loss                                   (1,517)           (5,926)
  Accumulated deficit                                               (48,671,175)      (47,591,139)
                                                                   ------------      ------------

      Total stockholders' equity                                      6,262,023         7,276,675
                                                                   ------------      ------------

TOTAL                                                              $ 20,881,404      $ 20,795,891
                                                                   ============      ============
</TABLE>

See notes to unaudited consolidated financial statements.




                                       4
<PAGE>   5

                  METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                                      THREE MONTHS ENDED
                                                          MARCH 31,
                                                 ----------------------------
                                                    2001              2000

REVENUES:
  Natural gas measurement sales and services     $ 4,888,983      $ 4,608,585
  Other                                              259,587           33,814
                                                 -----------      -----------

      Total revenues                               5,148,570        4,642,399
                                                 -----------      -----------

COSTS AND EXPENSES:
  Cost of measurement sales and services           3,738,727        3,480,977
  General and administrative                       1,402,985        1,251,369
  Selling, marketing and service                     342,659          513,237
  Depreciation and amortization                      367,481          315,481
  Research and development                           137,907        3,379,726
  Interest, finance charges and other                 35,534           45,532
                                                 -----------      -----------

      Total costs and expenses                     6,025,293        8,986,322
                                                 -----------      -----------

OPERATING LOSS                                      (876,723)      (4,343,923)

MINORITY INTEREST IN LOSS                                  -           95,801
                                                 -----------      -----------

NET LOSS                                            (876,723)      (4,248,122)

PREFERRED STOCK DEEMED DISTRIBUTION                 (180,476)      (2,513,709)
                                                 -----------      -----------

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS       $(1,057,199)     $(6,761,831)
                                                 ===========      ===========

NET LOSS PER BASIC AND DILUTED COMMON SHARE      $     (0.18)     $     (1.49)
                                                 ===========      ===========

WEIGHTED AVERAGE BASIC AND DILUTED COMMON
  SHARES OUTSTANDING                               5,908,067        4,539,229
                                                 ===========      ===========


See notes to unaudited consolidated financial statements.








                                       5
<PAGE>   6

                    METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED
                                                                                        MARCH 31,
                                                                              ------------------------------
                                                                                 2001               2000

<S>                                                                           <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                                    $   (876,723)     $ (4,248,122)
  Adjustments to reconcile net loss to net cash
    used by operating activities:
    Depreciation and amortization                                                  367,481           315,481
    Stock based compensation expense                                                                  50,808
    Gain on disposal of property, plant and equipment                                                   (150)
  Changes in other assets and liabilities, net of effect of acquisitions:
      Trade receivables                                                            575,259           316,382
      Inventories                                                                 (438,925)          (50,144)
      Other current assets                                                         449,271            15,260
      Other noncurrent assets                                                      (10,928)           (1,423)
      Accounts payable                                                              63,118         1,525,528
      Accrued and other liabilities                                               (306,565)        1,019,643
                                                                              ------------      ------------
      Net cash used by operating activities                                       (178,012)       (1,056,737)
      Net cash provided (used) by discontinued operations                           38,548          (624,356)
                                                                              ------------      ------------
      Net cash used by operating activities                                       (139,464)       (1,681,093)
                                                                              ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition                                                                                       (408,334)
  Additions to property, plant, equipment and other                               (212,504)         (327,975)
  Proceeds from sale of property, plant and equipment                                                    150
                                                                              ------------      ------------
      Net cash used by investing activities                                       (212,504)         (736,159)
                                                                              ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net proceeds from private placement                                                             10,480,696
  Net borrowings (payments) on line of credit                                      767,878          (228,442)
  Exercise of stock options and warrants                                                             297,454
  Payments on capital lease obligations                                            (12,301)
                                                                              ------------      ------------
      Net cash provided by financing activities                                    755,577        10,549,708
                                                                              ------------      ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                          403,609         8,132,456

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                              468,813           361,658
                                                                              ------------      ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                    $    872,422      $  8,494,114
                                                                              ============      ============
</TABLE>


See notes to unaudited consolidated financial statements.









                                       6
<PAGE>   7


                  METRETEK TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                 As of March 31, 2001 and December 31, 2000 and
            For the Three Month Periods Ended March 31, 2001 and 2000


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The accompanying consolidated financial statements include the accounts
of Metretek Technologies, Inc. and its subsidiaries, primarily Metretek,
Incorporated ("Metretek Florida"), Southern Flow Companies, Inc. ("Southern
Flow"), PowerSpring, Inc. ("PowerSpring") and PowerSecure, Inc. ("PowerSecure")
and have been prepared pursuant to rules and regulations of the Securities and
Exchange Commission. The accompanying consolidated financial statements and
notes thereto should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 2000.

         Minority interest amounts included in the consolidated financial
statements represent an outside shareholder's 12.5% ownership interest in
PowerSpring. As of March 31, 2001 the Company repurchased that minority
interest. In addition, certain 2000 amounts have been reclassified to conform to
current year presentation.

         Due to the short-term nature of the PowerSecure contracts, the Company
uses the completed-contract method of revenue recognition. Under the
completed-contract method, income is recognized only when a contract is
completed or substantially completed.

         In the opinion of the Company's management, all adjustments (all of
which are normal and recurring) have been made which are necessary for a fair
presentation of the consolidated financial position of the Company and its
subsidiaries as of March 31, 2001 and the consolidated results of their
operations and cash flows for the three month periods ended March 31, 2001 and
March 31, 2000.

2.       COMPREHENSIVE LOSS

         The Company's comprehensive loss for the three months ended March 31,
2001 and 2000 was $872,314 and $4,345,751, respectively. The Company's
comprehensive loss includes net loss and foreign currency translation
adjustments.

3.       POWERSPRING TERMINATION

         Effective as of March 31, 2001, the Company completed various actions
in furtherance of the discontinuance of its PowerSpring subsidiary as an entity
and the restructuring of its business, including the transfer of management and
control of the PowerSpring product to Metretek Florida. As part of those
actions, the Company,


                                       7
<PAGE>   8

PowerSpring and John A. Harpole entered into a Termination Agreement and Mutual
Release that terminated the employment of Mr. Harpole, formerly the Vice
President of PowerSpring, and set forth the terms and conditions of the
termination, which included the termination of various agreements and
instruments to which the Company, PowerSpring and Mr. Harpole were parties.

         In connection with the termination: (i) the $741,666 promissory note
made by PowerSpring to Mr. Harpole was cancelled, and the related security
agreement pursuant to which PowerSpring had granted a security interest in its
asset to Mr. Harpole was terminated, (ii) Mr. Harpole transferred his 2,500,000
shares of PowerSpring common stock, which represented 12.5% of the outstanding
capital stock of PowerSpring, back to PowerSpring, (iii) Mr. Harpole's
employment and non-competition agreement was terminated, (iv) PowerSpring
transferred the assets and business of Mercator to Mercator Energy LLC ("New
Mercator"), a new limited liability company formed by Mr. Harpole, (v)
PowerSpring agreed to pay $250,000 to Mr. Harpole over the next year, (vi) the
Company reduced the exercise prices of Mr. Harpole's warrants to purchase 60,000
shares of Company common stock by $1.50 per share to a range of $3.00 to $4.00,
(vii) the Company issued Mr. Harpole options to purchase 80,000 shares of common
stock at $2.00 per share, (viii) PowerSpring retained New Mercator on an eight
month consulting basis at $5,000 per month, and (ix) the parties entered into a
standard mutual release of all claims.

         The Company has recorded other income in the accompanying financial
statements of approximately $255,000, which represents the difference between
the note amount of $741,666 and the costs to the Company in connection with the
termination of PowerSpring.

4.       SEGMENT INFORMATION

         The Company's reportable segments are strategic business units that
offer different products and services. They are managed separately because each
business requires different technology and marketing strategies.

         The Company has four reportable business segments: automated energy
data management; natural gas measurement services; Internet-based energy
information and services; and distributed generation.

         The operations of the Company's automated energy data management
segment are conducted by Metretek Florida. Metretek Florida's manufactured
products fall into three categories: remote data collection products; electronic
corrector products; and application-specific products. Metretek Florida also
provides energy data collection and management services and post-sale support
services for its manufactured products.

         The operations of the Company's natural gas measurement services
segment are conducted by Southern Flow. Southern Flow's services include on-site
field services, chart processing and analysis, laboratory analysis, and data
management and reporting. These services are provided principally to customers
involved in natural gas production, gathering, transportation and processing.


                                       8
<PAGE>   9

         The operations of the Company's Internet-based energy information
and services segment were conducted by PowerSpring through March 31, 2001.
PowerSpring commenced limited revenue generating operations in the second
quarter of 2000. We are currently in the process of the discontinuance of
PowerSpring as an entity and the restructuring of its business. Effective on
April 1, 2001, PowerSpring's product was transferred to Metretek Florida.

         The operations of the Company's distributed generation segment are
conducted by PowerSecure. PowerSecure commenced operations in September 2000 and
has incurred limited costs during the three months ended March 31, 2001.

         The Company evaluates the performance of its operating segments based
on income (loss) before income taxes, nonrecurring items and interest income and
expense. Intersegment sales are not significant.

         Summarized financial information concerning the Company's reportable
segments is shown in the following table. The "Other" column includes corporate
related items, results of insignificant operations and, as it relates to segment
profit or loss, income and expense not allocated to reportable segments.

<TABLE>
<CAPTION>
                                                   INTERNET-BASED
                          AUTOMATED    NATURAL GAS      ENERGY
                         ENERGY DATA   MEASUREMENT    INFORMATION   DISTRIBUTED
                         MANAGEMENT     SERVICES   AND SERVICES(1)   GENERATION      OTHER        TOTAL

<S>                      <C>           <C>          <C>            <C>          <C>            <C>
MARCH 31, 2001

Revenues                 $1,365,262    $3,290,269   $   233,452    $       -    $  259,587    $  5,148,570
Segment profit (loss)      (232,107)      382,586      (287,353)    (231,141)     (508,708)       (876,723)
Total assets              6,836,444     9,662,219     2,942,951      490,618       949,172      20,881,404

MARCH 31, 2000

Revenues                 $1,920,941    $2,687,644   $         -   $        -    $     33,814    $4,642,399
Segment profit (loss)      (527,461)      213,402    (3,432,085)           -        (597,779)   (4,343,923)
Total assets              8,650,716     9,868,726     4,577,757            -       6,989,264    30,086,463
</TABLE>


(1) Effective April 1, 2001, the Company's Internet-Based Energy Information
and Services segment will be rolled into its Automated Energy Data Management
segment.

5.       SUBSEQUENT EVENTS

         On April 10, 2001, the Company, through its wholly-owned subsidiary
PowerSecure, acquired Industrial Automation Corp. ("Industrial Automation"), a
North Carolina corporation. The Company issued 150,000 restricted shares of its
common stock in exchange for all of the issued and outstanding capital stock of
Industrial Automation. As a result of the acquisition, Industrial Automation has
become a wholly-owned subsidiary of PowerSecure.

         Industrial Automation, founded in 1991 and headquartered in Greensboro,
North Carolina, is in the business of designing and marketing process controls
used in distributed generation operations. This acquisition is intended to
enhance PowerSecure's

                                       9
<PAGE>   10

technology and time to market in the field of distributed generation.

         PowerSecure also entered into five-year employment and non-competition
agreements with each of the two former owners of Industrial Automation. The
employment and non-competition agreements include an "earn out" that generally
entitles the former owners to any net earnings of PowerSecure arising from
projects commenced by Industrial Automation prior to the acquisition.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           AND RESULTS OF OPERATIONS

INTRODUCTION

         The following discussion of our results of operations for the three
month periods ended March 31, 2001 and 2000 and of our financial condition as of
March 31, 2001 should be read in conjunction with our consolidated financial
statements and related notes thereto included elsewhere in this report.

RESULTS OF OPERATIONS

         The following table sets forth selected information related to our
primary business segments and is intended to assist you in an understanding of
our results of operations for the periods presented. All amounts shown are prior
to the deduction of minority interest in PowerSpring.

                                                          Three Months Ended
                                                              March 31,
                                                     --------------------------
                                                      2001               2000
                                                     -------            -------
                                                        (amounts in thousands)
REVENUES:
       Southern Flow                                 $ 3,290            $ 2,687
       Metretek Florida                                1,365              1,921
       PowerSpring                                       234                  -
       PowerSecure                                         -                  -
       Other                                             260                 34
                                                     -------            -------
       Total                                         $ 5,149            $ 4,642
                                                     =======            =======
GROSS PROFIT:
       Southern Flow                                 $   823            $   678
       Metretek Florida                                  482                473
       PowerSpring                                      (154)               (23)
                                                     -------            -------
       Total                                         $ 1,151            $ 1,128
                                                     =======            =======
SEGMENT PROFIT (LOSS):
       Southern Flow                                 $   382            $   213
       Metretek Florida                                 (232)              (527)
       PowerSpring                                      (287)            (3,432)
       PowerSecure                                      (231)                 -
         Other                                          (509)              (598)
                                                     -------            -------
           Total                                     $  (877)           $(4,344)
                                                     =======            =======


                                       10
<PAGE>   11


         Our reportable segments are strategic business units that offer
different products and services. They are managed separately because each
business requires different technology and marketing strategies.

         We currently have four reportable business segments: automated energy
data management; natural gas measurement services; Internet-based energy
information and services; and distributed generation.

         The operations of our automated energy data management segment are
conducted by Metretek Florida. Metretek Florida's manufactured products fall
into three categories: remote data collection products; electronic corrector
products; and application-specific products. Metretek Florida also provides
energy data collection and management services and post-sale support services
for its manufactured products.

         The operations of our natural gas measurement services segment are
conducted by Southern Flow. Southern Flow's services include on-site field
services, chart processing and analysis, laboratory analysis, and data
management and reporting. These services are provided principally to customers
involved in natural gas production, gathering, transportation and processing.

         The operations of our Internet-based energy information and services
segment were conducted by PowerSpring through March 31, 2001. PowerSpring
commenced limited revenue generating operations in the second quarter of 2000.
We are currently in the process of the discontinuance of PowerSpring as an
entity and the restructuring of its business. Effective on April 1, 2001,
PowerSpring's product was transferred to Metretek Florida.

         The operations of our distributed generation segment are conducted by
PowerSecure. PowerSecure commenced operations in September 2000 and has incurred
limited costs during the three months ended March 31, 2001.

         We evaluate the performance of our operating segments based on income
(loss) before taxes, nonrecurring items and interest income and expense.
Intersegment sales are not significant.


THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED MARCH 31, 2000

         Revenues. Our consolidated revenues for the three months ended March
31, 2001 increased $506,000, or 10.9%, compared to the same period in 2000. The
increase was primarily due to the generation of revenue by PowerSpring and an
increase in revenues by Southern Flow, partially offset by a decrease in
revenues by Metretek Florida.


                                       11
<PAGE>   12

PowerSpring generated revenues of $488,000 during the three months ended March
31, 2001, which included approximately $255,000 relating to the termination of
PowerSpring. There were no comparable revenues for the same period in 2000 and
we do not anticipate any material revenues by PowerSpring as an entity in future
quarters due to the transfer of the Mercator business as discussed below and the
transfer of the PowerSpring products and business to Metretek Florida. Any
future revenues attributable to PowerSpring's business will be recorded as
revenues of Metretek Florida. Southern Flow's revenues increased $603,000, or
22.4% compared to the same period in 2000, primarily due to an increase in
equipment sales and services resulting from an improving domestic natural gas
market. Metretek Florida's revenues decreased $556,000, or 28.9%, compared to
the same period in 2000, consisting of a decrease in domestic sales of $485,000
and a decrease in international sales of $71,000. The decrease in Metretek
Florida's domestic sales was primarily due to a decrease in contract
manufacturing activities, attributable to the loss of a major contract
manufacturing customer which sold its business. The decrease in international
sales is attributable to a decrease in sales of Metretek Florida's remote data
collection products and systems in the United Kingdom. A comparison of Metretek
Florida's current domestic and international product mix is as follows:

                                            Three Months Ended March 31,
                                            ----------------------------
                                             2001                  2000
                                             ----                  ----
                                            (dollar amounts in thousands)

Remote data collection
    products and systems                     $  884   65%   $1,016   53%
Electronic corrector products                   418   31%      399   21%
Circuit board assembly sales                     63    4%      506   26%
                                             ------           ------

Total                                        $1,365           $1,921
                                             ======           ======

         Costs and Expenses. Costs of sales and services include materials,
labor, personnel and related overhead costs incurred to manufacture products and
provide services. Cost of sales and services for the three months ended March
31, 2001 increased $258,000, or 7.4%, compared to the same period in 2000.
Southern Flow's cost of sales and services for the three months ended March 31,
2001 increased $458,000, or 22.8%, compared to the same period in 2000, almost
entirely attributable to increased sales. As a result, Southern Flow's gross
profit margin after costs of sales and services remained approximately 25% for
the three months ended March 31, 2001 as it was for the comparable period in
2000. Metretek Florida's cost of sales and services for the three months ended
March 31, 2001 decreased $565,000, or 39.0%, compared to the same period in
2000. This decrease was primarily due to lower personnel and related overhead
costs associated with contract manufacturing activities. Contract manufacturing
activities generally result in lower gross margins than that of traditional
products at Metretek Florida. As a result, although Metretek Florida's revenues
for the three months ended March 31, 2001 decreased approximately 28.9% compared
to the same period in 2000, Metretek Florida's overall gross profit margin
increased from 24.6% to 35.3%


                                       12
<PAGE>   13

compared to the same period in 2000. PowerSpring incurred costs of sales and
services in the amount of $388,000 during the three months ended March 31, 2001,
for which there were no comparable costs during the same period in 2000.

         General and administrative expenses include personnel and related
overhead costs for the support and administrative functions. General and
administrative expenses for the three months ended March 31, 2001 increased
$152,000, or 12.1%, compared to the same period in 2000, due primarily to
personnel, travel and overhead costs associated with the development of the
business of PowerSecure, for which there were no comparable costs during the
same period in 2000.

         Selling, marketing and service expenses consist of personnel and
related overhead costs, including commissions for sales and marketing
activities, together with advertising and promotion costs. Selling, marketing
and service expenses for the three months ended March 31, 2001 decreased
$171,000, or 33.2%, compared to the same period in 2000. The decrease in
selling, marketing and service expenses is primarily due to the discontinuation
of independent sales activity by PowerSpring and a reduction in sales personnel
at Metretek Florida.

         Depreciation and amortization expenses include the depreciation and
amortization of real property, customer list, goodwill and capitalized software
development costs. Depreciation and amortization expenses for the three months
ended March 31, 2001 increased $52,000, or 16.5%, compared to the same period in
2000, due to the additional depreciation expenses related to equipment purchased
by PowerSpring during 2000.

         Research and development expenses include payments to third parties,
personnel and related overhead costs for product and service development,
enhancements, and upgrades. Research and development expenses for the three
months ended March 31, 2001 decreased $3,242,000, or 95.9%, compared to the same
period in 2000. The decrease is due primarily to the substantial reduction in
the second half of 2000 of research and development expenses related to
PowerSpring's business. We incurred no research and development expenses
attributable to PowerSpring during the three months ended March 31, 2001, as
compared to approximately $3,150,000 of such expenses incurred in the comparable
period during 2000.

         Interest, finance charges and other expenses include interest and
finance charges on our credit facility as well as other non-operating expenses.
Interest, finance charges and other expenses for the three months ended March
31, 2001 decreased $10,000, or 22.0%, compared to the same period in 2000. The
decrease reflects reduced borrowings in the first three months of 2001 compared
to the same period in 2000.

SEASONALITY AND CYCLICALITY

       Metretek Florida historically derives substantially all of its revenues
from sales of its products and services to the utility industry. Metretek
Florida has experienced variability of operating results on both an annual and a
quarterly basis due primarily to


                                       13
<PAGE>   14

utility purchasing patterns and delays of purchasing decisions as a result of
mergers and acquisitions in the utility industry and changes or potential
changes to the federal and state regulatory frameworks within which the utility
industry operates. The utility industry, both domestic and foreign, is generally
characterized by long budgeting, purchasing and regulatory process cycles that
can take up to several years to complete. Metretek Florida's utility customers
typically issue requests for quotes and proposals, establish committees to
evaluate the purchase, review different technical options with vendors, analyze
performance and cost/benefit justifications and perform a regulatory review, in
addition to applying the normal budget approval process within a utility.
Purchases of Metretek Florida's products are, to a substantial extent,
deferrable in the event that utilities reduce capital expenditures as a result
of mergers and acquisitions, pending or unfavorable regulatory decisions, poor
revenues due to weather conditions, rising interest rates or general economic
downturns, among other factors.

         Based upon the discussion and analysis in this item, we believe that
our future revenues, expenses and results of operations are likely to vary
significantly from quarter to quarter. As a result, quarterly comparisons of
operating results are not necessarily meaningful or indicative of future
performance.


FINANCIAL CONDITION AND LIQUIDITY

         We require capital principally for (i) the financing of inventory and
accounts receivable, (ii) research and development expenses, (iii) capital
expenditures for property and equipment and software development, and (iv) the
funding of possible future acquisitions.

         Net cash used by operating activities of approximately $139,000 for the
three months ended March 31, 2001 was the net result of the following: (i)
approximately $509,000 of cash used to fund continuing operations, before
changes in assets and liabilities; (ii) approximately $331,000 of cash provided
by changes in working capital and other asset and liability accounts; and (iii)
approximately $39,000 of cash provided by discontinued operations.

         We plan to continue our research and development efforts to enhance our
existing products and services and to develop new products. Research and
development expenses in the amount of $138,000 were incurred in the three months
ended March 31, 2001. We anticipate that our research and development costs in
2001 will total approximately $720,000, of which $600,000 is expected to relate
to Metretek Florida's business, including further development and enhancement of
the PowerSpring product, and $120,000 is expected to relate to PowerSecure's
business.

         We anticipate capital expenditures in 2001 of approximately $600,000,
primarily for product software development for the PowerSpring and PowerSecure
products. Capital expenditures for the three months ended March 31, 2001 were
approximately $213,000.


                                       14
<PAGE>   15

         On April 14, 1998, we entered into a loan and security agreement (the
"Loan Agreement") with a commercial bank (the "Lender") providing for a combined
$5,000,000 credit facility consisting of loans (the "Loans") and letters of
credit subject to limitations described below. The Loan Agreement provides for
daily advances in the form of Loans to fund capital requirements, and daily
paydowns on outstanding balances of the Loans from collection of customer
accounts receivable. We make monthly interest payments computed at prime plus 1%
(9.0% at March 31, 2001) on outstanding balances of the Loans. On March 1, 2001,
the Loan Agreement was amended to extend the maturity date from March 14, 2001
to May 31, 2001. We intend to renew this credit facility on a long-term basis
prior to its expiration. However, we cannot provide any assurance that we will
be able to renew or replace our current credit facility.

         The Loans are secured by our tangible and intangible assets, including
the equipment, inventory, receivables and cash deposits, and the pledge of the
shares of our subsidiaries. The Loan Agreement requires us to maintain a minimum
tangible net worth, a maximum debt to tangible net worth ratio, minimum annual
net income, a minimum debt service coverage ratio, and contains other standard
covenants related to our operations, including prohibitions on the payment of
dividends and the issuance or repurchase of securities (with certain exceptions)
without the Lender's consent. Under the terms of our Series B Preferred Stock,
our borrowings under the Loan Agreement cannot exceed $3 million without the
consent of the holders of a majority of the outstanding shares of Series B
Preferred Stock.

         Borrowings on the Loans are limited to the sum of 80% of eligible
accounts receivable of Southern Flow and Metretek Florida and 50% of raw
materials and finished goods inventory (up to a combined maximum of $1,500,000)
of Southern Flow and Metretek Florida. At March 31, 2001, we had a combined
$3,122,779 in Loan availability, of which $1,559,389 had been borrowed by
Southern Flow and Metretek Florida, leaving $1,563,390 in unused Loan
availability.


       Effective as of March 31, 2001, we completed various actions in
furtherance of the discontinuance of our PowerSpring subsidiary as an entity and
the restructuring of its business, including the transfer of management and
control of the PowerSpring product to Metretek Florida. As part of those
actions, the Company, PowerSpring and John A. Harpole entered into a Termination
Agreement and Mutual Release that terminated the employment of Mr. Harpole and
set forth the terms and conditions of the termination, which included the
termination of various agreements and instruments to which the Company,
PowerSpring and Mr. Harpole were parties.

       In connection with the termination, among other things: (i) the $741,666
promissory note made by PowerSpring to Mr. Harpole was cancelled, and the
related security agreement pursuant to which PowerSpring had granted a security
interest in its asset to Mr. Harpole was terminated, (ii) PowerSpring agreed to
pay $250,000 to Mr. Harpole over the next year, and (iii) the Company reduced
the exercise prices of Mr. Harpole's



                                       15
<PAGE>   16

warrants to purchase 60,000 shares of Company common stock by $1.50 per share to
a range of $3.00 to $4.00. We have recorded other income for the three months
ended March 31, 2001 of approximately $255,000, which represents the difference
between the note amount of $741,666 and our costs in connection with the
termination of PowerSpring.

         On September 28, 2000, we issued a $2.8 million unsecured convertible
promissory note to Scient Corporation ("Scient") in fulfillment of our account
payable for consulting services. The convertible note is payable in quarterly
installments, due March 31, 2002, bears no interest, and is convertible at any
time at Scient's discretion into either shares of our Common Stock at the rate
of $5.94 per share or shares of PowerSpring common stock at the rate of $0.60
per share. As of March 31, 2001, the outstanding balance of the unsecured note
is $2.6 million.

         Based on our current plans and assumptions, management believes that
our capital resources, including cash and cash equivalents, amounts available
under existing credit facilities (assuming our current credit facility is either
renewed or extended on a long-term basis or we enter into a new credit facility
of comparable size) and funds generated from continuing operations will be
sufficient to meet our anticipated cash needs in 2001, including our working
capital needs, capital requirements and debt service requirements. However,
unanticipated events, over which we have no control, could increase our
operating costs or decrease our ability to generate revenues from product and
service sales. In addition, we will also require additional capital in the
future in order to make any significant acquisition of businesses or
technologies.

         Obtaining additional financing will depend on many factors, including
market conditions, our operating performance and investor sentiment. Terms of
debt financing could restrict our ability to operate our business or to expand
our operations. In addition, if we raise additional capital by issuing capital
stock or securities convertible into capital stock, stockholders could suffer a
significant dilution of their percentage ownership interests, and the new
capital stock or other new securities could have rights, preferences or
privileges senior to those of our current stockholders. Our capital raising will
be subject to the consent of the Lender, if our credit facility is then in
effect. In addition, depending on how it is structured, our capital raising
could require the consent of the holders of our Series B Preferred Stock. We
cannot assure you that we will be able to renew or replace our current credit
facility. We also cannot assure you that sufficient additional funds will be
available to us on a timely basis or that, if available on a timely basis, such
funds can be obtained on terms satisfactory to us, to our lender and to the
holders of our Series B Preferred Stock, if their consents are required. Our
inability to obtain sufficient additional capital on a timely basis on terms
that are acceptable would have a material adverse effect on our business,
financial condition and results of operations.

RECENT ACCOUNTING PRONOUNCEMENTS

       In June 1998, Statement of Financial Accounting Standards No. 133,
"Accounting


                                       16
<PAGE>   17

for Derivative Instruments and Hedging Activities" was issued and, in June 2000,
was amended by Statement of Financial Accounting Standards No. 138, "Accounting
for Certain Derivative Instruments and Certain Hedging Activities". FAS 133, as
amended, establishes methods of accounting for derivative financial instruments
and hedging activities related to those instruments as well as other hedging
activities including hedging foreign currency expenses. We have adopted FAS 133
for our fiscal year ending December 31, 2001. Because we do not utilize
derivative financial instruments, the adoption of FAS 133 did not have a
material impact on our financial position or results of operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

         This Form 10-QSB contains forward-looking statements within the meaning
of and made under the safe harbor provisions of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are all statements other than statements
of historical facts, including statements concerning management's plans,
objectives, goals, strategies, hopes and beliefs; projections about earnings,
revenues and other financial and non-financial items, events and performance;
statements about proposed products, services, technologies and operations; and
statements of assumptions underlying any of the foregoing. The words "may",
"could", "should", "will", "project, "intend", "continue", "believe",
"anticipate", "estimate", "expect", "plan", "potential", or "scheduled",
variations of such words, and similar expressions are intended to identify
forward-looking statements. Examples of forward-looking statements include
statements regarding, among other matters, our plans, intentions, beliefs and
expectations about the following:

         -     our future prospects, including our revenues, income, margins,
               profitability, cash flow, liquidity, financial condition and
               results of operations;

         -     the sufficiency of funds, from operations available borrowings
               and other capital resources, to meet our future working capital,
               capital expenditure and business growth needs;

         -     our products and services, market position and strategic
               relationships;

         -     our business plans and strategies;

         -     market demand for and customer benefits attributable to our
               products and services;

         -     competition and industry and market conditions, segments and
               trends;

         -     our ability to successfully develop and operate our PowerSecure
               business;

         -     our restructured PowerSpring business;

         -     the effects of litigation; and


                                       17
<PAGE>   18

         -     future economic, business and regulatory conditions.

         These forward-looking statements are based on the current plans,
intentions, goals, strategies, type, beliefs and expectations of management as
well as assumptions made by and information currently available to management.
You are cautioned not to place undue reliance on these forward-looking
statements. Forward-looking statements are not guarantees of future performance
or events, but are subject to and qualified by a number of known and unknown
risks, uncertainties and other factors that could cause actual results to differ
materially from those express or implied by the forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to,
the following:

         -     our history of losses and uncertainty of future profitability;

         -     our ability to obtain and maintain sufficient capital and
               liquidity to meet our operating and capital requirement and
               growth needs, including our ability to renew or replace our
               existing line of credit, which is currently set to expire on May
               31, 2001;

         -     our ability to successfully and timely develop and market
               PowerSecure's products, services, and technologies;

         -     our lack of operating history in our new businesses and the
               unproven business models in our PowerSecure and PowerSpring
               businesses;

         -     the successful and timely development and market acceptance of
               the product, service and technologies of PowerSecure;

         -     the successful restructuring of PowerSpring as a division of
               Metretek Florida;

         -     the complexity, uncertainty and time constraints associated with
               the development and market acceptance of new product and service
               designs and technologies;

         -     the effects of competition in our markets, including the
               introduction of competitors' products, services and technologies
               and our timely and successful response thereto;

         -     utility purchasing patterns and delays and potential changes to
               the federal and state regulatory frameworks within which the
               utility industry operates;

         -     fluctuations in our quarterly operating results;

         -     the effect of pending and future lawsuits;

         -     our ability to attract, retain and motivate key personnel;



                                       18
<PAGE>   19

         -     our ability to secure and maintain key contracts, business
               relationships and alliances;

         -     our ability to make successful acquisitions and in the future to
               successfully integrate and utilize any acquired product lines,
               key employees and businesses;

         -     changes in the energy industry in general, and technological and
               market changes in the natural gas and electricity industries in
               particular;

         -     the impact and timing of the deregulation of the natural gas and
               electricity markets;

         -     our ability to manage the anticipated growth of PowerSecure;

         -     the capital resources, technological requirements, and internal
               business plans of the natural gas and electricity utilities
               industry;

         -     restrictions on our capital raising ability imposed by the terms
               of our current credit facility and the Series B Preferred Stock;

         -     dividends on the Series B Preferred Stock increasing our future
               net loss available to common shareholders and net loss per share;

         -     general economic and business conditions;

         -     effects of changes in product mix on our expected gross margins
               and net income;

         -     risks inherent in international operations;

         -     risks associated with our management of private energy programs;

         -     the receipt and timing of future customer orders;

         -     unexpected events affecting our ability to obtain funds from
               operations, debt or equity to finance operations, pay interest
               and other obligations, and fund needed capital expenditures and
               other investments;

         -     our ability to protect our proprietary information and
               technology;

         -     the impact of current and future laws and government regulations
               affecting the energy industry in general and the natural gas and
               electricity industries in particular; and

         -     other risks and uncertainties that are discussed in this report
               or that are discussed from time to time in our other reports and
               filings with the SEC, including but not limited to our Annual
               Report or Form 10-KSB for the fiscal year ended December


                                       19
<PAGE>   20

               31, 2000.

         We do not intend, and we undertake no duty or obligation, to update or
revise any forward-looking statements for any reason, whether as the result of
new information, future events or otherwise.









                                       20
<PAGE>   21



                                     PART II
                                OTHER INFORMATION



ITEM 6.   EXHIBITS AND RESPONSE ON FORM 8-K

                (a) Exhibits

          10.1   Termination Agreement and Mutual Release, dated as of
                 March 31, 2001, by and among Metretek Technologies, Inc.,
                 PowerSpring, Inc., Mercator Energy Incorporated, John A.
                 Harpole and Mercator Energy LLC.


          10.2   Stock Purchase Agreement, dated as of April 6, 2001, by and
                 among Stanley W. Timblin, Jeffrey W. Timblin, PowerSecure,
                 Inc. and Metretek Technologies, Inc.

                 (b) Form 8-K. The Company did not file any Current Reports on
                     Form 8-K during the quarter ended March 31, 2001.



















                                       21
<PAGE>   22


                                   SIGNATURES



         In accordance with the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                    METRETEK TECHNOLOGIES, INC.



Date:    May 11, 2001               By:  /s/ W. Phillip Marcum
                                         -----------------------
                                         W. Phillip Marcum
                                         President and Chief Executive Officer




Date:    May 11, 2001               By:  /s/ A. Bradley Gabbard
                                         -----------------------
                                         A. Bradley Gabbard
                                         Executive Vice President
                                         and Chief Financial Officer














                                       22