But the utility would have an incentive to lobby for legislation which only allocates funding to heat pump incentive programs, as opposed to programs which coup

But the utility would have an incentive to lobby for legislation which only allocates funding to heat pump incentive programs, as opposed to programs which couple those incentives with requirements/incentives for deep energy retrofits. They certainly have skin in the game for shaping the legislative/policy outcomes which will affect their ability to negotiate for rates and how they invest in the grid (which is == higher rates and revenue, which in turn == higher profit given the agreed rate of return).