Governments do silly things to save small amounts of money - the military research base in Norco was almost closed/moved to save $200k over a 10 year span. $20k/year. They could have saved that much money by recycling aluminum cans.
This system isn't that novel - I question the ice method, though. Seems like it would be more valuable to spin up a large, super-efficient flywheel over the offpeak hours and then use that kinetic energy to push back into electricity during peak - much more generalized savings, and doesn't involve phase changes that suck energy and efficiency.