Energy Reserves Group, Inc. v. Kansas Power & Light Co.
United States Supreme Court
459 U.S. 400 (1983)
Relevant factsFree
Energy Reserves Group (plaintiff) had long-term natural gas contracts with Kansas Power & Light (defendant) containing price-escalator clauses tied to federally regulated price increases, but Kansas later passed a law barring such price increases from federal rate hikes, preventing Energy Reserves Group from collecting the higher contractual prices once federal regulators raised rates. Energy Reserves Group sued in state court, arguing the law violated the Contract Clause, and the Kansas Supreme Court rejected that challenge.
IssueFree
Whether a state may regulate the price of natural commodities in the intrastate market without violating the Contract Clause of the United States Constitution.
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