I think you could actually build a small resistor (an energy efficient appliance if you will) and then get paid for not building a giant resistor (the hypothetical crummy appliance you didn't buy). I suppose one fix at least is to tie any ability to auction your load-reduction-services to the capability to actually reduce load on command. If you reduce load around the clock or at uncontrolled times (like an energy-efficient lightbulb) then your reward ought to be just the average price of power since you're not really helping to smooth out the peaks in any way. In general though these counter-factual pricing schemes are pretty prone to distortion I think and ought be be avoided. Ideally your reward for not using power during a peak is just you don't pay an inflated peak power cost.