That’s roughly the opposite of the development of electric utilities in the US. The IOUs owned dense urban areas and refused to electrify further out. It was only the rise of public municipal utilities that got them to go to the states, implement the regulatory compact, be granted rate of return, etc., and then they began building out more.

That is the historic situation yes. However it doesn't change how things are today. the municipal utilities that remain have lower costs because they don't have the more expensive structures.