In the case of United Gas Pipe Line Co. v. Memphis Light, Gas and Water Division et al., 1958, the U.S Supreme Court ruled in favor of Memphis Light, Gas and Water Division (MLGW). The dispute arose when United Gas Pipe Line Company sought to increase its rates for natural gas supplied to MLGW without first obtaining approval from the Federal Power Commission (FPC), as required by the Natural Gas Act. The company argued that it was not subject to FPC jurisdiction because it only sold gas directly to consumers rather than other distributors or resellers. However, the court rejected this argument stating that any sale for resale falls under FPC's jurisdiction regardless of whether it is direct or indirect. Therefore, United could not unilaterally change its rates without prior approval from FPC.

In the dissenting opinion for United Gas Pipe Line Co. v. Memphis Light, Gas and Water Division et al., Justice Brennan disagreed with the majority's interpretation of the Natural Gas Act (NGA). He argued that Congress intended to give Federal Power Commission (FPC) broad authority over natural gas companies' rates and practices, including those related to direct sales for resale in interstate commerce. The majority's decision not only contradicted this intent but also undermined FPC’s ability to protect consumers from unreasonable or discriminatory prices. Furthermore, he contended that if a company voluntarily subjected itself to FPC jurisdiction by filing rate schedules for certain transactions under NGA Section 4(d), it could not selectively withdraw from such regulation without violating NGA Section 7(b)'s prohibition against abandonment of service without FPC approval. Therefore, he believed United had no right unilaterally to cancel its filed rate schedule covering direct sales for resale.