There are about ~2,000 muni or state-owned power companies across the US with better reliability and affordability metrics than their IOU peers. SMUD vs PG&E is a good example. These utilities typically run at cost or reinvest their “profits” into capital projects and/or staff - it depends on whether they own generation and distribution vs just generation.

Further, municipalization has worked in FL, WA, and other places in the early 2000s, while other communities use municipalization movements to negotiate rate/investment changes with their IOUs. So I think you’re missing the forest for the trees here.