In the 1935 case of Georgia Railway & Electric Co. et al. v. Decatur, the U.S Supreme Court ruled in favor of the city of Decatur, upholding its right to regulate local utilities within its jurisdiction despite objections from a private corporation operating street railways and electric power plants in that area. The Georgia Railway and Electric Company had challenged an ordinance passed by Decatur which required it to pave between and adjacent to their tracks on certain streets at their own expense, arguing that this was beyond the city's authority as they were already regulated by state law under a public service commission. However, Justice Cardozo writing for majority held that municipalities have inherent powers not explicitly denied them by state constitution or laws; thus could impose reasonable regulations upon utilities using public streets even if those companies are also regulated by a statewide body.

In the dissenting opinion for Georgia Railway & Electric Co. et al. v. Decatur, it was argued that the majority's decision to uphold a municipal ordinance requiring street railway companies to pave and maintain areas around their tracks infringed upon state authority over public utilities regulation. The dissenting justices believed that this ruling allowed municipalities too much power in dictating terms of service for these companies, potentially leading to inconsistent regulations across different jurisdictions within a single state. They also expressed concern about potential financial burdens placed on utility providers by such ordinances, which could ultimately affect rates charged to consumers or impact the viability of providing services in certain areas altogether.