[eigenvector]

Load shedding is implemented at the distribution substation level, not individual customers (unless they are very large customers connected directly to the high-voltage network like a manufacturing plant).

Furthermore, the retail energy providers offering these wholesale pricing schemes are just over-the-top resellers of energy, they don't own or operate any part of the electricity network. They can't instantaneously turn off anything.

[gruez]

>Load shedding is implemented at the distribution substation level, not individual customers

Not really, what I'm talking about are devices that turn off high load devices when system load is too high, so the load can be reduced[1]. While it might be true that these devices aren't activated on a per-residence level, the general effect of raising prices, and people's electricity getting cut off in response is the same. The only difference is that you're shutting off power to people who are willing to pay for it the least, rather than the whole neighborhood.

[1] https://en.wikipedia.org/wiki/Demand_response

[eigenvector]

I have both a technical and a practical answer for you.

The technical answer is that demand response resources are considered dispatchable or interruptible load. Load shedding is the dropping of "firm" or non-dispatchable load. Typically, load shedding due to energy inadequacy only occurs after all demand response resources have already been called in. It's not one or the other, it's always both in tandem.

The practical answer is that during extreme weather, there are never enough people willing to voluntarily freeze. The demand for heat when it's below freezing in a state where homes aren't insulated and people don't own winter clothing is relatively inelastic.

[gruez]

>The practical answer is that during extreme weather, there are never enough people willing to voluntarily freeze. The demand for heat when it's below freezing in a state where homes aren't insulated and people don't own winter clothing is relatively inelastic.

Not exactly. While it's true that people are willing to pay infinite dollars to not freeze (aka stay alive), there are a variety of ways to do it that don't involve using electricity. eg. starting a fire (risky I know), or cohabiting with relatives.