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Who is he?
Maxwell Dillon was an electrical lineman who suffered a pretty bad accident (this kind of thing happens a lot in superhero stories, doesn't it?) and has the ability to retain and control electricity. Dillon's crimes are usually pretty limited in their scope due mostly to the fact that he's a pretty greedy person. Bank and jewelry robberies make up the bulk of his crimes, but that's a more normal crime than trying to turn people into lizards.
How could he work in the movie?
The studio might think that he needs some giant master plan, and in a sense he does, but what's wrong with having Electro rob several banks throughout the movie? Why not make the movie a heist picture with up to three or four heists that all play out differently. This would give us a chance to see Spider-Man stopping the kind of crimes that we expect him to with a mixture of superhuman fighting.
Who should play him?
Josh Stewart. Doesn't ring a bell? Well did you see a little movie called "The Dark Knight Rises"? He played Barsad (Bane's right hand man) and he made a good impression on a lot of people with his work. While the bad guys were easily my favorite parts of the movie anyway, there was just something about the way he delivered his lines and his expressions that made him a total force to be reckoned with. I think he can pull off the wit and craziness you need for Electro.
(Photo credit: WENN.com)