These peaks cry out for demand management. This means exposing customers to actual prices. But how is a homeowner to respond to these? This seems like a great use case for home automation, where systems can be automatically turned up/down, on/off, in response to changes in prices, or even in response to forecasts of changes (so, for example, a home might be precooled to below normal before a large peak, then allowed to gradually warm during the peak with the A/C turned off.)
More complex structured contracts with electricity providers might also be a solution, where consumers pay for only a certain level of reliability in the supply, with the provider being able to throttle power in tight situations.
(Precooling could be extended to making ice. A tonne of ice is ~1 m^3, which isn't that much volume. Storing energy this way could be much cheaper than doing so with batteries.)