The proponents seem to have a naive believe that "government run" equals free from outside interests. In fact, the opposite is true.
Government run: Post Office. Private: FedEx
Government run: DMV Private: Costco
It is extremely unlikely that taking over legacy utilities will "lower costs, greater investments in the grid and improved performance". Public utilities are already heavily government regulated with mandated rates of returns. There's no magic want that both lowers costs and has greater investments in the grid -- those are opposites.
Hopefully it doesn't go through. But there are a lot of dumb ideas that get passed, so who knows.