Well, I would eliminate the pellets and the water bottle ASAP and I'll tell you why. There is a very close relationship between dehydration and high glucose in the blood. Glucose is eliminated through urine BUT when the body cannot eliminate ALL the excess, it goes into the blood. That is one link, then there is the hormone link. If there isn't enough hydrdation, there is reduced urine (the body's way of keeping enough moisture for the internal organs to work) and, when there is reduced urine, you end up with too much of certain things in it and, in the case of glucose, also in the blood. This is because of a hormone called vasopressin (in birds, the equivalent is called vasotocin) which the body produces when it's dehydrated. This hormone makes the kidneys retain urine BUT it also makes the liver produce blood sugar so it's a double-whammy!
Birds kidneys are not like mammals' (they are like a mix between mammal and reptilian organs) and the avian hydration 'mechanism' is different than mammals. Parrots were created by nature to derive most of their hydration needs from the food they eat which is 85-95% water (fruits, buds, green seeds, etc) so they are hard-wired not to drink too much or too often (they usually only drink early in the morning once and then again in the evening -they, as all prey animals, are crepuscular feeders because it's when they are safest from predators). When you feed pellets (a maximum of 10% moisture - WAAAAAY lower than nature meant for them to eat) and offer water from a bottle (which releases a drop at a time), the bird simply does not get enough hydration. And, because their kidneys work differently than mammals (they cannot concentrate the urine they way we do), they can't use this method to avoid mild dehydration. You can't really tell because, first of all, we are talking about a subclinical (mild) dehydration but also because they don't have the symptoms we are used to with mammals (dry skin, dry mouth mucosa, skin without elasticity, etc) so parrots that are fed food too dry (people also give them dehydrated fruit instead of fresh, crackers, etc) and don't have easy access to water (as in big gulps from a nice big bowl deep enough for them to dip their beaks halfway into the water) could end up with a chronic state of mild dehydration. Mild dehydration = vasotocin + not enough urine for the body to get rid of the excess glucose (which could also be dietary -birds should never consume anything with sucrose -sugar- in it) = high glucose in the blood.
Now, I am not saying that giving the bird a good diet (low in carbs and then ONLY complex ones), proper hydration and exercise as well as reducing stress as much as possible (just because a bird has been living a certain way for many years doesn't mean it's not stressed by aspects of it -mind you! I am NOT trying to imply that your bird is stressed out, I am just making a point that most people seem to miss) is going to take care of the problem because they have found that years of mild dehydration will end up causing the body to develop insulin resistance which might not be reversible but, if the bird was mine, I would definitely try it.
I firmly believe in treating the entire body (holistic) and, as much as possible, through the usage of natural ways (meaning not man-made medicines) so, if I took in a bird with high glucose I would make sure it's eating an organic, low carb, VERY moist diet all the time; that it has easy access to lots of water (big -deep enough so the bird can dip half the length of the beak in it- bowl of cold water both at dawn and dusk), regular exercise (flight, of course, as there is no other exercise for a bird) and a VERY strict solar schedule (a healthy endocrine system is essential with sick birds!), with a good FS light (CRI 94+, Ktemp 5000-5500) in the ceiling fixture of the room where the bird spends most of its time (light is a nutrient to birds and a trigger for hormone production).
I am giving you a couple of links for you to read. There are a couple of human-oriented articles but the information can be extrapolated and use for birds, too. And a couple of studies specific to birds - they are a bit hard to understand but the info is there and it's pretty much what I explained to you above.
These two are about the relationship between dehydration and hyperglycemia
http://www.livestrong.com/article/23945 ... se-levels/http://www.diabetes-book.com/diabetes-dehydration/These are about the avian kidneys, vasotocin and the relationship between vasotocin, glucagon and stress:
https://www.ncbi.nlm.nih.gov/pubmed/16288753http://www.exoticpetmedicine.com/article/S1055-937X(05)80007-6/abstract (you need to pay for this one)
https://www.ncbi.nlm.nih.gov/pubmed/23500673http://www.poulvet.com/poultry/articles/physiology.phphttp://www.sciencedirect.com/science/ar ... 2974907348