In the case of Utah Public Service Commission v. El Paso Natural Gas Co., 1968, the Supreme Court ruled in favor of El Paso Natural Gas Company (EPNG). The dispute arose when EPNG sought to increase its rates for interstate natural gas sales and was opposed by several states including Utah. The Federal Power Commission approved the rate hike but this decision was challenged by Utah on grounds that it violated both federal law and state rights. However, the Supreme Court upheld the Federal Power Commission's approval stating that under Section 4(e) of Natural Gas Act, once a new rate is filed with commission and not suspended during hearing process, it becomes legally effective until commission concludes otherwise after hearings. Furthermore, they stated that any refunds due from overcharges during this period are subject to condition set forth in section 4(e), which does not include interest payment on refund amounts as argued by Utah.

In the dissenting opinion for Utah Public Service Commission v. El Paso Natural Gas Co., Justice Douglas argued that the majority's decision undermined state authority over local utility rates. He contended that while federal law does indeed govern interstate natural gas sales, it should not interfere with a state's ability to regulate its own utilities' purchasing practices and pass those costs onto consumers. The Federal Power Commission (FPC), he asserted, had no jurisdiction in this case as it was essentially about retail rates which fall under states’ purview. By allowing FPC intervention, he believed the court was setting a dangerous precedent of federal intrusion into matters traditionally handled by individual states.