It heats up water. Most power plants are near rivers/lakes.
They very, very, very seldom have to do this.
The “main” power generators (nuclear, coal,…..) handle the base load and aux. power generators (gas turbines which can be started and stopped quickly) handle the peak loads.
You will note that the voltage output may vary from 122 to 118v (target is 120). This occurs as peak loads increase and decrease.
They monitor and predict peak loads very accurately and account for it in their “master plan”.
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