I think it’s pretty reasonable to look at energy providers in electricity to see how particular regulation/utility status can hinder innovation. MA opened up its electricity markets in the 90s which cause more generators to enter the market, and then further liberalized generator regs to allow for wind, solar, and attempt at hydro. The variety of alternative sources wasn’t available until a variety of measures were introduced to allow more players in the market. IMO another issue with them being ‘natural monopolies’ is the products are able to be differentiated, somewhat technically but also business services (contract length, bundling, etc). Could you put regs in place that would limit those options and thus push them toward NM? Sure but I don’t think it would be popular. Personally, I switch from xfinity to Verizon recently and it’s made a world of difference.

It would be very difficult for the state to pass regulations that don’t end up superseded by FCC or other federal regulation, muni ownership is the only real way around that, which is why I jumped there. Your original prompt didn’t raise that prospect just some other commenters so my bad.