The Central Kentucky Natural Gas Co. v. Railroad Commission of Kentucky case in 1933 revolved around the issue of whether a state could regulate the rates charged by a natural gas company for its interstate business operations, or if this was solely within federal jurisdiction due to its impact on interstate commerce. The Supreme Court ruled that while states do have some power to regulate local aspects of such businesses, they cannot interfere with matters related to interstate commerce as it falls under federal jurisdiction according to the Commerce Clause in the U.S Constitution. In this specific case, it was determined that since Central Kentucky Natural Gas Company's activities were primarily involved with transporting and selling gas across state lines rather than producing it locally, their rates fell under federal control and thus couldn't be regulated by the State Railroad Commission.

The dissenting opinion in the case of Central Kentucky Natural Gas Co. v. Railroad Commission of Kentucky argued that the majority's decision was an overreach and intrusion into state affairs, violating principles of federalism. The dissenters believed that it was not within the jurisdiction or power of a federal court to interfere with a state's regulation and control over its own public utilities, such as natural gas companies. They contended that states have inherent authority to regulate their internal commerce for protecting public welfare and ensuring fair business practices; this includes setting reasonable rates for utility services provided by private corporations operating within their borders. Therefore, they disagreed with the majority’s view that these rate-setting actions constituted confiscation under Fourteenth Amendment due process clause protections against deprivation of property without just compensation.