Federal Power Commission v. Skelly Oil Co. et al.

Opinion summary

Etalia.ai summary of the majority opinion

The case involved the Federal Power Commission (FPC) and Skelly Oil Co., among others, concerning the regulation of natural gas prices. The central issue was whether certain sales by producers to interstate pipelines were subject to federal jurisdiction under the Natural Gas Act. The FPC had issued orders regulating these transactions, asserting that they fell within its authority as they affected interstate commerce. Skelly Oil challenged this assertion, arguing that their contracts did not constitute 'sales for resale' in interstate commerce and thus should not be regulated federally. The Supreme Court held that such sales indeed fell under federal jurisdiction because they ultimately impacted rates charged to consumers across state lines. This decision reinforced the broad scope of federal regulatory power over natural gas pricing when it affects interstate markets.