The United States Supreme Court case, UNITED STATES v. PUBLIC UTILITIES COMMISSION OF CALIFORNIA ET AL., 1952, revolved around the issue of whether a state regulatory body could impose its regulations on federal entities operating within the state's jurisdiction. The U.S. government challenged California Public Utilities Commission’s (CPUC) authority to regulate rates charged by a federally owned corporation for electricity sold to private consumers in California. The court ruled that while states have broad powers under their police power to regulate utilities for protection of public health and safety, these powers do not extend over federal instrumentalities unless Congress has specifically provided such control or it is necessary for the state's self-preservation. In this case, there was no congressional authorization allowing CPUC to exercise control over the federally owned utility company nor was it necessary for California's self-preservation; hence CPUC lacked jurisdiction.

The dissenting opinion in the case of United States v. Public Utilities Commission of California et al., 1952, argued that the majority's decision was a departure from established principles governing federal-state relations and intruded upon state regulatory authority. The dissent contended that there was no constitutional or statutory basis for the Supreme Court to interfere with decisions made by a state commission regarding rates charged by utilities within its jurisdiction. It further asserted that such interference would undermine states' rights and disrupt their ability to regulate local affairs effectively. The dissent also expressed concern about potential negative implications for federalism if this precedent were allowed to stand, including an imbalance of power between federal and state governments.