It's to limit the overall demand. Not in terms of “excess supply can be diverted“ but that “limiting local non-strained grid use“ reduces the kWh cost. SPP (OK, and others), ERCOT, etc. have max $/kWh limits.

Monday, 5 minute supplies were trading at $4k. SPP has a max limit of $1k. Normal cost is about $26. No k. Just $26.

The ask to limit is about energy trading and not necessarily localized demand. It's because they didn't really do anything material after Enron. In their case, they were arbitraging and selling more power than could be consumed, so the kWh charge was actually far higher.since the recipient couldn't actually take delivery of the whole.order.

It's all a $$ game.