Here’s a video of Severin Borenstein discussing real-time pricing in retail electricity markets, from a presentation at CITRIS in April 2007:
It’s a good overview of some of the applied economic and policy issues in retail electricity pricing. Recommended to all. One specific thing I would add, though, is that he characterizes real-time pricing as being hourly. You all know, because I’ve talked a lot here about the GridWise Olympic Peninsula Testbed project, real-time pricing is feasible for residential customers, in five-minute intervals, using a double-auction retail market design.