Public Utilities Commission very well may set a legal Demarc point. Does that mean they must stop providing equipment and services beyond that point? Or does it simply mean they must provide equipment and services up to that point and anything afterwards is up to them if they wish to do so?
That demarc point set by laws may not be same point as the NEC defined "service point" for a particular installation.
Majority of customers subscribe to a service of 600 volts or less and said Demarc point is generally somewhere on the load side of a less than 600 volts transformer. Then comes the occasional industrial customer that subscribes to meduim voltage service. Where is the legal demarc point for them? One size fits all approach probably is not going to work for the demarc point.
The legal demarcation point is were the National Electrical Safety Code Stops and the National Electrical Code begins. The utility and/or the AHJ do not have to like it. It is a regulation of the State Agency adopted in accordance with State law. Up to the Demarcation Point you have a service drop or a service lateral. After the Demarcation point you have Service Entry Conductors.