Arizona Public Service Co. v. Snead

New Mexico has imposed a tax on the privilege of generating electricity within its borders. The question in this case is whether that tax conflicts with federal law, statutory or constitutional.

I

The Four Corners power plants, located in New Mexico’s desert northwest, are owned by the appellants, five public utilities companies.1 Most of the electricity generated at the plants is ultimately sold to out-of-state consumers.2 New *143Mexico imposes a 4% gross receipts tax on retail sellers of electricity,3 but since the bulk of the appellants' sales are made to consumers in other States, they do not…