In the 1959 case of Public Service Commission of the State of New York v. Federal Power Commission, the Supreme Court ruled in favor of the Federal Power Commission (FPC). The issue at hand was whether or not FPC had jurisdiction over sales for resale by a pipeline company to local distribution companies within a single state. The court held that such transactions were indeed subject to federal regulation under Natural Gas Act's definition of "interstate commerce". This decision clarified and expanded upon previous rulings regarding interstate commerce and energy regulation, confirming that even when gas is sold within one state, if it has traveled through interstate pipelines before reaching its final destination, then it falls under federal jurisdiction.

In the dissenting opinion for Public Service Commission of the State of New York v. Federal Power Commission, it was argued that the majority's decision to uphold federal jurisdiction over wholesale electricity rates in interstate commerce could potentially undermine state regulatory authority and disrupt local utility operations. The dissenters contended that states should retain control over their own utilities as they are better equipped to understand and manage local conditions and needs. They also expressed concern about potential rate increases resulting from this shift in power, which could negatively impact consumers. Furthermore, they questioned whether Congress intended for such a broad interpretation of federal powers under the Natural Gas Act when it was enacted.