There's no need to imagine a minimal case, indeed, the quantum effects will make that much more complicated and weird than the bulk case.
Electrical power is dissipated as heat. This occurs through whatever mechanisms: free electrons (or in some materials, ions as well) get accelerated by the electric field, and bump into the lattice for various reasons, exchanging electron energy with phonon energy (lattice vibrations).
Over long time scales (in this case, roughly femtoseconds I think?), the electron and phonon energies are equal, i.e. they are in thermal equilibrium. So we don't need to worry about the electron dynamics or the energy transfer mechanisms at all, just that it happens and energy is able to flow at a useful rate.
So, then, phonons to radiation: we apply the same scheme again. This time, the phonon gas is coupled to EM fields near (and under) the surface of the material, and to free space. (Note that the penetration depth of EM fields is finite and nonzero -- the optical equivalent of skin effect is the Debye scattering depth.) There is a mechanism for this exchange, and again by the equipartition theorem, they have the same energies; so we get thermal radiation of the same temperature.
That exchange goes something like, a given atom has some dipole moment, so when it's shaken (by phonon energy), EM waves are generated. And vice versa, when waves are absorbed. I don't actually know, offhand, the full quantum model of Planck radiation from condensed matter.
By the way, the black body derivation doesn't make any reference to matter at all -- the classical setup is merely that there's a cavity which contains a photon gas (thermal radiation). Now, that cavity might have to be made of matter, and certainly in experiments it is, but that's not a necessity; if there were some way to create total internal reflection with space itself, it would have the same effect.
(It should be no surprise, then, that black holes are predicted to have a temperature as well! The total bending of spacetime itself might be considered total internal reflection, and therefore a black hole seemingly forms a black body cavity. As containers of radiation go, they do happen to be particularly well sealed, so only radiate at exceptionally low temperatures, for any astronomically known black holes. A more convincing description of this does require more advanced physics, of course; it took a Stephen Hawking to discover!)
The derivation, in turn, for black body radiation, uses the energy of resonant modes, up to a cutoff frequency; the solution is the Planck law. It may be interesting to note that the distributions (population and energy) of photons is different from that of phonons or electrons (or, wait, are phonons the same, I forget?), but that doesn't matter because there is no single one-for-one exchange where one becomes the other and vice versa; this is the magic of a thermalized system, energy is always coming and going, and so the populations and energy levels of the various media aren't supposed to equate directly.
So, that is what determines the radiation: the statistics of the EM field. The temperature is related to the temperature of the body emitting it, which in turn is driven by the power dissipated.
It doesn't need to be a simple process, indeed the whole process involves a truly unimaginable number of individual elements (atoms, or their electrons, and the modes of the EM fields they reside in). In a certain sense, it would actually be an easier question to ask about the emission of light from an LED -- a more direct quantum interaction. By great fortune, we can integrate over most of those interactions -- the particles act together in a nearly continuous way, making a holistic approach tractable.
Statistical mechanics is a notoriously difficult topic in physics, but one well worth understanding, and intimidating though it may be, it is not at all beyond human understanding! (Or if that still leaves you feeling a bit hopeless, well...
Tim
Ed: I wanted that to be a hyperlink. I really did. This fucking forum Imgur plugin is too greedy. It will find anything and embed the whole god damned thing. UGH!