The U.S. Supreme Court case Federal Power Commission v. Panhandle Eastern Pipe Line Co., et al., 1948, revolved around the jurisdiction of the Federal Power Commission (FPC) over natural gas companies' sales for resale in interstate commerce under the Natural Gas Act of 1938. The FPC had issued an order directing Panhandle to reduce its rates charged to Michigan Consolidated Gas Company and other customers, arguing that they were excessive and unreasonable. However, Panhandle contended that these transactions fell outside FPC's regulatory authority as they involved direct sales rather than sales for resale or transportation services. The court ruled in favor of the FPC, holding that it did have jurisdiction over such transactions because Congress intended a comprehensive scheme of federal regulation over all wholesales of natural gas in interstate commerce when it enacted the Natural Gas Act. The decision clarified that direct industrial sales by pipeline companies are subject to federal control even if not involving reselling or transportation services.

In the dissenting opinion for Federal Power Commission v. Panhandle Eastern Pipe Line Co., Justice Robert H. Jackson argued that the majority's decision to uphold the Federal Power Commission's (FPC) jurisdiction over natural gas companies' direct sales was an overreach of federal power and a misinterpretation of the Natural Gas Act. He contended that Congress intended for state regulatory bodies, not the FPC, to oversee such transactions as they are essentially local in nature and do not directly affect interstate commerce. Furthermore, he expressed concern about potential negative impacts on states' rights and economic freedom due to this broad interpretation of federal authority under Commerce Clause jurisprudence.