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In the United Fuel Gas Company v. Public Service Commission of West Virginia case, the Supreme Court examined whether a state could regulate gas prices for a company that also operated in other states. The United Fuel Gas Company argued that its interstate operations should exempt it from such regulation under the Commerce Clause of the Constitution. However, West Virginia's Public Service Commission insisted on its right to control rates within its jurisdiction. The Supreme Court ruled in favor of West Virginia, stating that while Congress had power over interstate commerce, this did not prevent states from regulating utilities within their borders as long as they didn't interfere with interstate commerce or contradict federal law. Therefore, even though United Fuel was an interstate business entity, it still had to comply with individual state regulations where applicable.
The dissenting opinion in the United Fuel Gas Company v. Public Service Commission of West Virginia case argued that the majority's decision to strike down a state law requiring natural gas companies to prioritize residential customers over industrial ones during times of shortage was incorrect. The dissenters believed that this law did not violate the Commerce Clause of the U.S Constitution, as it did not discriminate against interstate commerce but rather regulated local distribution based on public necessity and welfare. They contended that states should have authority to regulate businesses within their borders for public interest, especially when federal authorities had not enacted legislation on such matters. Furthermore, they disagreed with the majority's interpretation of contractual obligations between gas companies and industrial consumers as inviolable rights superseding state laws aimed at protecting residents' basic needs.