In a retail electricity market, retailers need to procure electricity from various electricity sources with different characteristics and then sell it to customers. Therefore, retailers need to make effective decisions about electricity sources,the electricity amount they procure and the price to offer to the customers. In the smart grid, real-time pricing DSM will be widely used to dynamically changing or shifting the electricity consumption, and new electricity supply resources might advert. Retailers need to consider the new characteristics of the smart grid when they make market decisions