A Tiered electricity plan in Texas allow you to pay a set rate for targeted amount of electricity use.
Tiered rates are a good option if you have consistent energy use in your home and can keep it within the pricing tier that works best for your electricity budget.
For most plans (though not all), you will have three options for pricing: 1 - 1000 kWh, 1001 - 2000 kWh, 2001+ kWh.
Typically, you receive a charge per tier. Meaning if you only use 999 kwh and the agreed rate for your plan is $83 for usage under 1000, then you will be charged $83 for energy use. If you use 1001 kWh, you would pay the rate for the second tier in addition to the first. And once you move passed the second tier, you would pay a fixed rate per kWh for any usage over 2000 kWh.