The U.S Supreme Court case Federal Power Commission v. New England Power Co., et al., 1973, centered around the issue of whether or not the Federal Power Commission (FPC) had jurisdiction to regulate wholesale electricity sales from a utility company that generated power in Canada but sold it within the United States. The FPC argued they did have such authority under Section 201(b) of the Federal Power Act, which grants them regulatory control over energy transmission and sale in interstate commerce. However, New England Power Company contended this didn't apply as their generation facilities were located outside U.S borders. The Supreme Court ruled in favor of the FPC, stating that while generation occurred outside U.S territory, since sale and transmission happened within national boundaries it fell under federal regulation. This decision reinforced broad federal powers over interstate energy transactions.

In the dissenting opinion for Federal Power Commission v. New England Power Co., Justice William O. Douglas argued that the majority's decision was a departure from established principles of administrative law and federalism, which could have significant implications for state regulatory authority over utilities. He contended that the Federal Power Commission (FPC) had exceeded its jurisdiction by attempting to regulate wholesale rates for electricity sold exclusively within one state, even though it crossed state lines at some point in transmission. According to him, this interpretation expanded FPC’s power beyond what Congress intended when it enacted the Federal Power Act and encroached on states' rights to regulate their own utilities. Furthermore, he expressed concern about potential negative impacts on consumers due to increased costs resulting from dual regulation by both federal and state authorities.