In the case of Federal Power Commission v. Transcontinental Gas Pipe Line Corp., the U.S Supreme Court ruled in favor of the Federal Power Commission (FPC). The dispute centered around whether or not FPC had jurisdiction over sales for resale by independent producers to interstate pipelines, and if it could regulate rates charged by these producers. The court held that under Section 1(b) of Natural Gas Act, FPC has authority over all wholesales of natural gas in interstate commerce, including direct industrial sales for resale from independent producers who are not engaged in any other phase of transportation or distribution process. This decision was based on a broad interpretation of "sale for resale" and an understanding that Congress intended to give FPC comprehensive authority to regulate rates charged by those who participate in natural gas business at wholesale level.

The dissenting opinion in the case of Federal Power Commission v. Transcontinental Gas Pipe Line Corp. argued that the majority's decision to uphold the Federal Power Commission's (FPC) order was incorrect because it failed to consider whether or not such an order would result in a reasonable rate for consumers. The dissenters believed that while FPC has authority over natural gas companies, this power should be exercised with caution and consideration for public interest, particularly when determining rates. They contended that FPC did not adequately justify its decision and instead relied on arbitrary factors which resulted in an unfair burden on consumers who had no control over these costs. Furthermore, they criticized the majority’s interpretation of “public convenience and necessity” as being too broad and potentially harmful to consumer interests.