Assuming the voltages are within tolerance in the first place a 3% drop should not be detrimental. Keep in mind that motors draw more current when operated at an over ANDunder voltage. The reason is counter-electromotive force or back EMF. When voltage decreases back EMF decreases offering less resistance to current. The motor draws more current and runs hot.
When overvoltage is present back EMF is saturated and opposition to current flow is only limited to the maximum back EMF and motor winding impedance. More current flows and the motor overheats.
Inductive loads will draw more current but maybe the ratio of resistive to inductive loads is offset enough it makes it feasible to the utility's. [Linked Image]