I think there is another factor of Choice that needs to be considered here. If people were given the choice between losing power when it gets cold and saving money or paying more for more reliable power then it might be reasonable.

Power companies making that choice for their customers isn't fair. As a utility it should be expected that it is well run and stable. It isn't an easy market to have competition in due to the infrastructure meaning we can't have "cheap and unstable" options next to "expensive and stable". Where the state decides the utilities fall on that axis is the question here, I personally think they should be on the more conservative side and provide stability.

The other thing to consider are the huge knock on effects from losing power. I may be ok with getting extra cash in exchange for power outages but when the stop lights are out and restaurant freezers start thawing things get a lot worse.