I have seen my fair share of data centers and office complexes switching to their diesel generators due to very high energy spot prices.

If you have an alternative source of power (even if it is a gas generator) I think a spot price contract is fine. Otherwise it is too risky for residential consumers.

Good point. If there is an alternate power source, it makes perfect sense to go to spot pricing. If you don't and you have room mates who may not like freezing in the middle of winter, don't.