William J. Brennan, Jr.

“ Since the first sale was subject to federal regulation, and since the energy subsequently sold by Edison to Colton for resale was to be consumed wholly within California, there was said to be a 'complete lack of interest on the part of any other state,' and the sale was therefore held to be subject to state regulation and exempt from FPC regulation. ”

“ Those are transactions which the United States Supreme Court has held are beyond the reach of the States under the Constitution. The States have long regulated the rates charged by the local distributing companies to consumers; but they cannot reach the interstate producer supplying the distributing company.' Hearings on S. 1725, supra, pp. 756-757. 'It therefore follows that if there is to be any regulation of the wholesale part of the electric and gas business which passes over State lines it must be supplied by the Federal Government.' Id., p. ”

“ The FPC found, on the extensive record made before a Hearing Examiner, that out-of-state energy from Hoover Dam was included in the energy delivered by Edison to Colton, and ruled that the 'sale to Colton § a sale of electric energy at wholesale in interstate commerce subject to Sections 201, 205 and 206 of the Federal Power Act.' 26 F.P.C. 223, 231. ”

“ Section 201 (f) of the Federal Power Act exempts the Secretary's sale of energy from FPC jurisdiction but our concern in this case is not with the Secretary's sales to Edison but with Edison's resale to Colton.↑ As originally introduced, the bill contained no reference to the regulation of resales of Hoover energy. ”