In the 1987 case of Eric J. Schneidewind v. ANR Pipeline Company and ANR Storage Company, the U.S Supreme Court ruled in favor of ANR Pipeline Co., stating that a Michigan statute regulating securities was preempted by federal law under the Natural Gas Act (NGA). The dispute arose when an interstate natural gas company sought to issue preferred stock as part of its capital structure, but this move was opposed by several customers including Schneidewind who argued that it would increase rates for consumers. The state's Public Service Commission approved the issuance subject to certain conditions which were challenged by both parties leading to court action. In its decision, the Supreme Court held that while states have authority over local aspects of utility regulation such as retail rates and facilities construction, they cannot regulate areas like security issuances where there is clear federal jurisdiction under NGA.

In the dissenting opinion for Eric J. Schneidewind, et al. v. ANR Pipeline Company and ANR Storage Company, Justice White disagreed with the majority's view that Michigan's Act 144 was preempted by federal law under the Natural Gas Act (NGA). He argued that there is no conflict between state and federal regulations as they address different aspects of natural gas companies' operations - states regulate intrastate matters while FERC oversees interstate concerns. Furthermore, he contended that Congress did not intend to occupy this field exclusively when it enacted NGA; rather it sought a cooperative relationship between state and federal governments in regulating these entities. Therefore, according to him, Michigan’s requirement for local utilities to seek approval before issuing securities does not interfere with FERC’s ability to set just and reasonable rates or ensure reliability of service across states lines.