That example doesn't apply here. The utility covered the cost by selling bonds. Municipalities use bonds to fund the building of toll roads and other long term projects without tax dollars.
I'm sure the bonds are utility company bonds so the risk point still stands. Even if the project fails financially, even if the project were to essentially bankrupt the utility and it had to be bailed out by the taxpayers, the bonds will almost certainly get paid off. I'm not saying either of these things will happen, but the point about taxpayers taking the downside risk is a good one.
Of course, internet service is a utility and so should be underwritten by the state, just like other critical infrastructure with benefits shared by all, so the point about mispricing risk--while valid--is a critique of government-run projects generally, but no more applicable here than in the building of bridges and roads.
