[en] In November 2000, the TransAlta Energy Corp. began construction on its $400 million natural gas fuelled cogeneration project in Sarnia Ontario. The Sarnia Regional Cogeneration Project (SRCP) is designed to integrate a new 440 MW cogeneration facility to be built at the Sarnia Division of Dow Chemicals Canada Inc. with nearby existing generators totaling 210 MW at Dow and Bayer Inc. At 650 MW, the new facility will rank as Canada's largest cogeneration installation. Commercial operation is scheduled for October 2002. TransAlta owns three natural gas fuelled cogeneration facilities in Ontario (in Ottawa, Mississauga and Windsor) totaling 250 MW. The cost of electric power in Ontario is currently controlled by rising natural gas prices and the supply demand imbalance. This balance will be significantly affected by the possible return to service of 2000 MW of nuclear generating capacity. The SRCP project was announced just prior to the Ontario Energy Competition Act of October 1998 which committed the province to introduce competition to the electricity sector and which created major uncertainties in the electricity market. Some of the small, 25 MW projects which survived the market uncertainty included the Toronto-based Toromont Energy Ltd. project involving gas fuelled cogeneration and methane gas generation from landfill projects in Sudbury and Waterloo. It was emphasized that cogeneration and combined heat and power projects have significant environmental advantages over large combined cycle facilities. The Ontario Energy Board is currently considering an application from TransAlta to link the SRCP facility to Ontario's Hydro One Network Inc.'s transmission grid. 1 fig