Around 2000 or so, when I lived in Austin, the city announced that it was going to set up a network over which they could read electric meters (Austin had a city-owned electric utility). They said that, as long as they were rolling this out, they might as well use it for city-wide internet. Eventually it simply disappeared from the news.
This was around the same time that numerous streets were torn up so that various companies could lay fiber. They timed this just right so that multiple east-west streets were all fouled up at once, making it difficult to get across town. I'm not sure if or how all that fiber was used as it coincided with the early 2000s recession.