Duke Energy's proposal to increase energy rates for residential customers continues to face scrutiny as the North Carolina Utilities Commission hears testimony on the company's latest request.

The proceedings are part of a months-long process that has already resulted in Duke Energy scaling back its original proposal after public criticism from advocates, customers and elected officials.

Duke Energy initially sought a residential rate increase of 18% over two years. Following negotiations and feedback, the utility has reduced its request to average annual increases of about 3.4% to 3.7%.

"For a typical residential customer using 1,000 kilowatts per month, the monthly bill would rise $9.62 effective in January and then followed by $5.89 increase in January 2028," said Kendal Bowman, President of Duke Energy's utility operations in North Carolina said.

Bowman answered questions during Tuesday's hearing.

"We really need to balance ensuring a reliable system and able to make those investments in order for us to provide that reliable service for our customers, while also taking into context affordability. We believe this comprehensive settlement provides that right balance," said Bowman.

Duke officials argue the proposed increases are necessary to maintain and improve the electric system while meeting future demand.

However, those claims have faced pushback, including from North Carolina Attorney General Jeff Jackson, who last month announced he would not support the proposed settlement.

"We did our own independent analysis of what Duke (Energy) will need to meet demand, and we think they overshot the mark. We think they can come down significantly and still meet demand," said Jackson, in a video released by his office.

Tuesday afternoon, a group of advocates gathered at Halifax Mall to speak out against Duke Energy's proposed increase, which is roughly in line with the current rate of inflation (3.5%).

"Not everybody's getting these cost-of-living adjustments. You look at the retired state employees, they're not getting the cost-of-living adjustments. People on fixed income are not getting those types of adjustments. And so, if Duke (Energy's) got to give a little bit off the top of their profit to make electric rates more affordable for every North Carolinian, I'm for that," said Dan Crawford, Senior Director of Public Affairs for the North Carolina League of Conservation Voters.

Advocates note that Duke reported nearly $5 billion in profits during its last fiscal year and argue the company should absorb more of its costs rather than passing them to customers.

"From 2017 through 2024, residential electric bills in North Carolina have climbed nearly 30%. Families are already stretched with their budgets, and some are facing the very real possibility of having their power disconnected," said Rep. Maria Cervania, a Democrat who represents Wake County in the state House.

"The reality is that North Carolina families cannot afford these rising bills. We say no to rate hikes. Our bills are just too high across the board," noted Terryn Hall, North Carolina

State Director for Climate Power, who referenced increasing costs consumers are facing across several sectors.

As part of the proposed settlement, Duke has pledged $10 million for low-income bill assistance and weatherization programs. Company officials say they also provide specialized customer support for those struggling to pay their bills.

"They can call a unique 800 number and are directed to a group of specialized experienced agents who can walk them through that process for getting assistance," said Jacob Colley, managing director for Duke Energy Carolinas.

The North Carolina Utilities Commission is expected to make a final decision on the rate request this fall.

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