Earlier quoted context omitted.
In the central european grid, there is actually a market where companies can offer frequency stabilization service to the grid, which exists in both directions. It doesn't matter if the combat a lack of power in the grid with shedding loads or spinning up another generator. This exists on a few different timescales, and the faster-responding contracts trigger at higher frequency deviations. Primary operating reserve…
Yes, this function exists in some fashion in every grid (although the economic setup of how you're paid for that service differs widely). The problem in ERCOT is demand massively exceeding available supply over a period of days. You need to carry your primary operating reserve all the time, because you never know when a generator or transmission line may trip. When there's simply a lack of energy supply to meet deman…
Also, going beyond this, charging spot prices to consumers (both commercial and residential) serves to align incentives. Such as dis-incentivizing the use of resistive heating for extreme cold, as the prices are correlated with the extreme cold, making alternative heating setups for extreme weather more affordable in comparison.
Or, building houses so that extreme cold can be tolerated without damage by allowing pipes to be drained and the remaining sections to be heated separately, so the house as a whole can be unheated (and the people stay with friends).
Longer-term predicted loads can be billed at a fixed rate, but spiky loads, especially those correlated with ones at other customers of the utility, can't be.
You'd raise the prices until demand falls below the limits, instead of needing rolling blackouts. If people can't afford to take a hot shower right now, they just wait. At least in the absence of certain diseases, the human body is fine without showering for months. And as long as your building doesn't take damage, you'd gladly be payed a few thousand $ to put on really warm clothes for half a week.
And depending on the details, you'd even conclude it more economical to have to replace some pipes after water damage, than to keep that area heated.