Yeah, but part of our operating reserve is in form of industrial consumers. The slow (has 15 min to get to full power) tertiary reserve is partially provided by arc furnaces in steel mills.
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.