Even without significant regen enabled, your moving wheel is still putting some energy into the controller, which your wattmeter is detecting.
Nothing to worry about. Some of my controllers have led's in them indicating on off or problem codes. They light up if you ride with a battery unplugged.
If you were getting significant regen, hoo boy you'd know it when you pedaled with the motor off!!! It would feel like turning a motor with shorted phase wires. You can similate this easy. Unplug the motor from the controller on the phase wires. Then short two of the wires to the motor to each other with something, like a scrap of wire. The motor will be incredibly hard to turn. MOTOR SIDE WIRES. Don't short the controller side!!!
Unplug the controller, and short your phases, and it's going to make it a tough pedal away for a theif. Not likely the tweaker will know the trick yet.