700 psi is enormously high compared to current municipal water systems which rarely go over 150 psi. Maintaining and working on a pipeline of this size and pressure is more dangerous and very expensive. Over time, age will cause the network to lose pressure(through leaking, scaling, etc). How can facilities maintain power when a main line breaks? They would need their own water supply, tank and pumps in lieu of a diesel generator.
Electrical systems are generally much easier to install and work on. Piping is underground, large (compared to transmission wires) and much more prone to failures. A powerline going down can cause an inconvenience for a few days at most, but a broken water main will flood everything in its vicinity.
Also where will the water be sourced from? Municipalities are permitted to only draw a certain amount from their water supplies. This will definitely cause contention especially in drought conditions.