Thanks for the comments. I guess the power company can look at the usage history from each home and get a rough idea of the capacity that best serves the neighborhood.
Around here, the houses all use heat pumps for winter heating and they usually have anywhere from a 5 kW to 15 kW auxiliary heating coil in the inside air handler. These auxiliary heaters kick in when the outside compressor unit can't meet the heating demand.
Many years ago, we had a multiple-day outage due to a blizzard resulting in everyone's inside house temperature falling into the 50's (F). I happened to have my 2 meter handheld transceiver tuned to the electric utility communications up around 450 MHz. I heard one guy on the radio say that he was about to throw the switch, having completed the repairs. Moments later, the power in the neighborhood came back on. Usually you can't tell where the workers are by listening to the radio, since they only identify locations by telephone pole number. Anyway, about a minute later, someone else, presumably at one of the control stations, comes on the radio and asks the lineman if he did the repairs correctly since the power consumption was rising too fast and too high. I really wanted to key up my transmitter and scream, "that's because everybody's auxiliary heat just kicked on."