**Ridgewood      UK, LLC**

**Consolidated      Financial Statements**

**December      31, 2003, 2002 and 2001 **

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**Report      of Independent Registered Public Accounting Firm**

**/s/      Perelson Weiner LLP****New      York, New York**

**October      31, 2005**

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**Report      of Independent Registered Public Accounting Firm**

** **

** **
** **

**/s/      PricewaterhouseCoopers LLP**

**Florham      Park, NJ**

**May      29, 2003**

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| **Ridgewood                  UK, LLC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|----------|--------|
| **Consolidated                  Balance                  Sheets                                                                                                                                                                               ** |   |                              |       |     |   |
|                                                                                                                                                                                                                                                                      |   |                              |       |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **December                  31,** |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **2003**                          |       | **2002** |   |
| **Assets:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |       |     |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                 | 33,283,249 |     | $      | 2,925,298 |   |
| Trade                  receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 3,419,671  |     |   | 3,615,902 |   |
| Other                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 2,426,665  |     |   | 350,913 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 39,129,585 |     |   | 6,892,113 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Investment                  in Spanish landfill projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              | -          |     |   | 1,370,564 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Plant                  and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 36,011,951 |     |   | 25,107,753 |   |
| Construction                  in progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 6,576,893  |     |   | 312,858 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 42,588,844 |     |   | 25,420,611 |   |
| Accumulated                  depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | (7,248,466 | )        |   | (4,204,739 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 35,340,378 |     |   | 21,215,872 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Electric                  power sales contracts and other intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 24,165,360 |     |   | 21,865,668 |   |
| Accumulated                  amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | (6,366,794 | )        |   | (3,716,837 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 17,798,566 |     |   | 18,148,831 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Other                  non-current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 760,058    |     |   | 818,572 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| **Total                  assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                 | 93,028,587 |     | $      | 48,445,952 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| **Liabilities                  and Members’ Equity:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |       |     |   |   |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              |       |     |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                 | 3,676,900  |     | $      | 957,815 |   |
| Accrued                  expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              | 4,029,517  |     |   | 1,565,623 |   |
| Current                  portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 1,562,972  |     |   | 1,251,404 |   |
| Current                  portion of capital lease obligations (principally                  affiliates)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              | 772,554    |     |   | - |   |
| Current                  portion of construction advances - affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 338,004    |     |   | - |   |
| Due                  to affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 1,912,998  |     |   | 464,143 |   |
| Other                  current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 14,287     |     |   | - |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 12,307,232 |     |   | 4,238,985 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Long-term                  debt, less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 21,193,090 |     |   | 20,528,446 |   |
| Capital                  lease obligations, less current portion (principally                  affiliates)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 10,198,319 |     |   | - |   |
| Construction                  advances, less current portion - affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 34,178,955 |     |   | - |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 753,979    |     |   | 918,249 |   |
| Other                  non-current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | -          |     |   | 77,699 |   |
| Minority                  interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 2,030,568  |     |   | 5,400,035 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Commitments                  and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              |       |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| Members’                  equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 12,366,444 |     |   | 17,282,538 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |     |   |   |   |
| **Total                  liabilities and members’ equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                 | 93,028,587 |     | $      | 48,445,952 |   |

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| **Ridgewood                  UK, LLC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 |       |     |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|----------|--------|------------|--------|
| **Consolidated                  Statements of                  Operations                                                                                                            ** |   |                                                 |       |     |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **For                  the Year Ended December 31,** |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **2003**                                             |       | **2002** |   | **2001**   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |
| Power                  generation revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                                    | 13,713,905 |     | $      | 9,120,088  |   | $ | 6,233,030 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Cost                  of sales, including depreciation and amortization of $3,547,985,                  $2,978,809 and $2,042,387 in 2003, 2002 and 2001,                  respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | 13,633,056 |     |   | 9,991,516  |   |   | 5,594,142 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Gross                  profit (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 80,849     |     |   | (871,428   | )      |   | 638,888 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Other                  operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 |       |     |   |       |   |   |   |   |
| General                  and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 545,567    |     |   | 451,224    |   |   | 240,540 |   |
| Write                  down of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 |       |     |   |       |   |   |   |   |
| in                  power generation projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | -          |     |   | 854,367    |   |   | - |   |
| Total                  other operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 545,567    |     |   | 1,305,591  |   |   | 240,540 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| (Loss)                  income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                 | (464,718   | )        |   | (2,177,019 | )      |   | 398,348 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Other                  (expense) income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 |       |     |   |       |   |   |   |   |
| Interest                  income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | 184,878    |     |   | 82,280     |   |   | 149,208 |   |
| Interest                  expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (2,493,943 | )        |   | (1,765,644 | )      |   | (978,407 | ) |
| Equity                  income in Spanish landfill projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | -          |     |   | 94,781     |   |   | 18,336 |   |
| Total                  other expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | (2,309,065 | )        |   | (1,588,583 | )      |   | (810,863 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Loss                  before income taxes and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | (2,773,783 | )        |   | (3,765,602 | )      |   | (412,515 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Income                  tax (benefit) expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | (347,639   | )        |   | (168,847   | )      |   | 307,235 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Net                  loss before minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 | (2,426,144 | )        |   | (3,596,755 | )      |   | (719,750 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Minority                  interest in loss of CLP Holdings, Ltd                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 335,996    |     |   | 779,603    |   |   | 170,920 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |     |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                                    | (2,090,148 | )        | $      | (2,817,152 | )      | $ | (548,830 | ) |

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| **Ridgewood                  UK, LLC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|
| **Consolidated                  Statements of Changes in Members’ Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |
| **For                  the Years Ended December 31, 2003, 2002 and                  2001                                                                                        ** |   |   |       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |
| Members’                  equity, January 1, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 14,650,629 |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (548,830   | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 5,817,006  |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (1,066,940 | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (506,043   | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Members’                  equity, December 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 18,345,822 |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (2,817,152 | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 4,491      |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,749,377  |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Members’                  equity, December 31, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 17,282,538 |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (2,090,148 | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (4,269,459 | )      |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,443,513  |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Members’                  equity, December 31, 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 12,366,444 |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| **Ridgewood                  UK, LLC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |       |   |   |   |   |
| **Consolidated                  Statements of Comprehensive Loss**                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |       |
| **For                  the Years Ended December 31, 2003, 2002 and                  2001                                                                        **       |   |        |       |   |        |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | **2003**   |   |   | **2002**   |   |   | **2001** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | (2,090,148 | )      | $      | (2,817,152 | )      | $ | (548,830 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,443,513  |   |   | 1,749,377  |   |   | (506,043 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |       |   |   |       |   |   |   |   |
| Comprehensive                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | (646,635   | )      | $      | (1,067,775 | )      | $ | (1,054,873 | ) |

----

| **Ridgewood                  UK, LLC**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 |        |     |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|----------|--------|------------|--------|
| **Consolidated                  Statements of Cash                  Flows                                                                                                                  ** |   |                                                 |        |     |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **For                  the Year Ended December 31,** |        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **2003**                                             |        | **2002** |   | **2001**   |   |
| Cash                  flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 |        |     |   |       |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                    | (2,090,148  | )        | $      | (2,817,152 | )      | $ | (548,830 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Adjustments                  to reconcile net loss to cash flows provided by (used in) operating                  activities, net of businesses acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 |        |     |   |       |   |   |   |   |
| Depreciation                  and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 | 3,547,985   |     |   | 2,978,809  |   |   | 2,042,387 |   |
| Stock                  compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | -           |     |   | 309,217    |   |   | - |   |
| Minority                  interest in CLPE Holdings, Ltd                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | (335,996    | )        |   | (779,603   | )      |   | (170,920 | ) |
| Write-down                  of investments in power                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 |        |     |   |       |   |   |   |   |
| generation                  projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | -           |     |   | 854,367    |   |   | - |   |
| Equity                  in earnings in Spanish landfill projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                 | -           |     |   | (94,781    | )      |   | (18,336 | ) |
| Changes                  in assets and liabilities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |        |     |   |       |   |   |   |   |
| of                  businesses acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |        |     |   |       |   |   |   |   |
| Decrease                  (increase) in trade receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 541,293     |     |   | (835,800   | )      |   | (1,334,833 | ) |
| (Increase)                  decrease in other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | (1,873,881  | )        |   | (108,086   | )      |   | 716,373 |   |
| Increase                  (decrease) in accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 2,404,942   |     |   | (220,624   | )      |   | (259,303 | ) |
| Increase                  in accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | 2,109,605   |     |   | 53,071     |   |   | 979,517 |   |
| Increase                  in other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 | 13,138      |     |   | -          |   |   | - |   |
| (Decrease)                  increase in deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | (242,699    | )        |   | (259,482   | )      |   | 333,812 |   |
| (Decrease)                  increase in other non-current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (79,208     | )        |   | 72,826     |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Total                  adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                 | 6,085,179   |     |   | 1,969,914  |   |   | 2,288,697 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Net                  cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | 3,995,031   |     |   | (847,238   | )      |   | 1,739,867 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Cash                  flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 |        |     |   |       |   |   |   |   |
| Capital                  expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (13,112,768 | )        |   | (3,358,550 | )      |   | (6,847,325 | ) |
| Investment                  in Spanish landfill projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | -           |     |   | (395,887   | )      |   | - |   |
| Cash                  paid for acquired businesses, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |        |     |   |       |   |   |   |   |
| of                  cash received                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | -           |     |   | -          |   |   | (3,627,867 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Net                  cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 | (13,112,768 | )        |   | (3,754,437 | )      |   | (10,475,192 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Cash                  flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 |        |     |   |       |   |   |   |   |
| Construction                  advances - affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 41,473,868  |     |   | -          |   |   | - |   |
| Capital                  lease obligations (principally affiliates)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | (201,809    | )        |   | -          |   |   | - |   |
| Borrowings                  from bank                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | -           |     |   | 5,504,004  |   |   | 3,438,589 |   |
| Repayments                  of bank debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | (1,140,205  | )        |   | (866,895   | )      |   | (600,803 | ) |
| Short                  term advances from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | 155,387     |     |   | 192,103    |   |   | 272,040 |   |
| Distributions                  to minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | (505,390    | )        |   | -          |   |   | - |   |
| Distributions                  to member                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | (3,126,940  | )        |   | -          |   |   | (1,066,940 | ) |
| Cash                  contributions from member                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | -           |     |   | -          |   |   | 5,817,006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Net                  cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 | 36,654,911  |     |   | 4,829,212  |   |   | 7,859,892 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Effect                  of exchange rate on cash and cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 |        |     |   |       |   |   |   |   |
| equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | 2,820,777   |     |   | 270,873    |   |   | (101,923 | ) |
| Net                  increase (decrease) in cash and cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 |        |     |   |       |   |   |   |   |
| equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | 30,357,951  |     |   | 498,410    |   |   | (977,356 | ) |
| Cash                  and cash equivalents at beginning period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 | 2,925,298   |     |   | 2,426,888  |   |   | 3,404,244 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                    | 33,283,249  |     | $      | 2,925,298  |   | $ | 2,426,888 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 |        |     |   |       |   |   |   |   |

----

**1.**
**Organization      and Business Activity**

**2.      Summary of Significant Accounting Policies**

**Principles      of consolidation **

**Use      of Estimates**

**New      Accounting Standards and Disclosures**

**SFAS      143**

*Accounting      for Asset Retirement Obligations*

**SFAS      145**

*Rescission      of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement      No. 13, and Technical Corrections*

**SFAS      146**

*Accounting      for Costs Associated with Exit or Disposal Activities*

**FIN      45**

*Guarantor's      Accounting and Disclosure Requirements for Guarantees, Including Indirect      Guarantees and Indebtedness of Others*

**FIN      46R**

*Consolidation      of Variable Interest Entities*

**SFAS      149**

*Amendment      of Statement 133 on Derivative Instruments and Hedging      Activities*
*Accounting      for Derivative Instruments and Hedging Activities*

**SFAS      150**

*Accounting      for Certain Financial Instruments with Characteristics of both Liabilities      and      Equity*

**SFAS      153**

*Exchanges      of Nonmonetary Assets—an amendment of APB Opinion No. 29. *
*Accounting      for Nonmonetary Transactions,*

**Significant      Accounting Policies**

**Cash      and cash equivalents**

**Trade      receivables**

**Revenue      recognition**

**Foreign      currency translation**

**Impairment      of Long-Lived Assets and Intangibles**

**Plant      and equipment**

**Electric      power sales contracts and other intangibles**

| Year                  Ended   |         |
|-------------------------------|--------------|
| December                  31, | Amortization |
|                          |         |
| 2004                          | $1,636,658   |
| 2005                          | 1,636,658    |
| 2006                          | 1,636,658    |
| 2007                          | 1,636,658    |
| 2008                          | 1,636,658    |

**Supplemental      cash flow information**

**Stock-Based      Compensation**

**Income      taxes**

** **
** **

**Reclassification**

**3.**
**Long-Term      Debt**

|                                   | 2003                        |   | 2002                        |
|----------------------------------------|-----------------------------|--------|-----------------------------|
| Total                long-term debt    | $                22,756,062 |   | $                21,779,850 |
| Less                - Current portion  | (1,562,972)                 |   | (1,251,404)                 |
| Total                long-term portion | $                21,193,090 |   | $                20,528,446 |

| Year                  Ended   |                          |
|-------------------------------|-------------------------------|
| December                  31, | Payment                       |
|                          |                          |
| 2004                          | $                  1,562,972  |
| 2005                          | 1,747,275                     |
| 2006                          | 1,941,484                     |
| 2007                          | 2,088,025                     |
| 2008                          | 2,118,153                     |
| Thereafter                    | 13,298,153                    |
| Total                         | $                  22,756,062 |

**4.      Capital Lease Obligations and Construction Advances**

|     | **Offering**                        | **Net                  Funds**                                              | **Anticipated**                      | **Anticipated** |
|----------|-------------------------------------|-----------------------------------------------------------------------------|--------------------------------------|-----------------|
| **Fund** | **Period**                          | **Available                  For**                                          | **No.                  of Projects** | **Capacity**    |
|     | **Ended                  (Closed)** | **Construction                  ***                                         | **to                  be Developed** | **(MW)**        |
|     |                                |                                                                        |                                 |            |
| PBI      | Apr                  2003           | $       9,478,645                        | 5                                    | 7               |
| PBII     | Jun                  2003           |        16,227,833                        | 10                                   | 11.6            |
| PBIII    | Mar                  2004           |        18,880,696                        | 11                                   | 13              |
| PBIV     | Nov                  2004           |                           9,182,995 | 3                                    | 6               |
|     |                                |                                                                        |                                 |            |
| Total    |                                | $                       53,770,169                 | 29                                   | 37.6            |

| **Fund** |   | **No.                  of Projects** |   |   | **Capital                  Lease** |   | **Construction**                                                                                                           |
|----------|--------|--------------------------------------|--------|--------|------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|
|     |   | **Commissioned**                     |   |   | **Obligation**                     |   | **Advances                  ***                                                                                            |
|     |   |                                 |   |   |                               |   |                                                                                                                       |
| PBI      |   | 5                                    |   |   | $                  10,305,811      |   | $                                   - |
| PBII     |   | -                                    |   |   | -                                  |   | 17,536,010                                                                                                                 |
| PBIII    |   | -                                    |   |   | -                                  |   | 16,980,949                                                                                                                 |
| PBIV     |   | -                                    |   |   | -                                  |   | -                                                                                                                          |
| Total    |   | 5                                    |   |   | $                  10,305,811      |   | $                  34,516,959                                                                                              |

|                                                       |                        |   |
|------------------------------------------------------------|-----------------------------|--------|
| Gross                payments                              | $18,221,900                 |   |
| Less                - imputed interest                     | 7,251,027                   |   |
| Total                capital lease obligation              | 10,970,873                  |   |
| Less                - current maturity                     | 772,554                     |   |
| Capital                lease obligation- long-term portion | $10,                198,319 |   |

| Year                  Ended   |                          |
|-------------------------------|-------------------------------|
| December                  31, | Repayment                     |
| 2004                          | $                  772,554    |
| 2005                          | 832,040                       |
| 2006                          | 864,530                       |
| 2007                          | 954,404                       |
| 2008                          | 1,070,301                     |
| Thereafter                    | 6,477,044                     |
| Total                         | $                  10,970,873 |

**5.**
**Purchase      Commitment**

**6.**
**Electric      Power Sales Contract**

**7**
**Acquisition      of Businesses**

**8.**
**Investments      **

**9.**
**Fair      Value of Financial Instruments**

**10.**
**Transactions      with Affiliates**

|                       | 2003       |   | 2002                     |
|----------------------------|------------|--------|--------------------------|
| Trust                V     | $1,166,214 |   | $                245,334 |
| Growth                Fund | 595,837    |   | 218,809                  |
| Other                      | 150,947    |   | --                       |
| Total                      | $1,912,998 |   | $                464,143 |

**11.      Income Taxes**

|                                                            | **Year                    ended December 31,** |
|-----------------------------------------------------------------|------------------------------------------------|
|                                                            | **2003**                                       |   | **2002** |   | **2001** |
|                                                            |                                           | **Percent                    of** | **Percent                    of** |   | **Percent                    of** |
|                                                            | **Amount**                                     | **pretax** |   | **Amount** | **pretax** |   | **Amount** | **pretax** |
|                                                            |                                           | **income** |   |   | **income** |   |   | **income** |
| Income                    tax benefit at foreign statutory rate | $                    (809,750)                 | -30.0% |   | $                    (1,129,681) | -30.0% |   | $                     (123,755) | -30.0% |
| Amortization                    of foreign intangibles          |                       408,885        | 15.1% |   |                         524,529 | 13.9% |   |                        281,159 | 68.2% |
| Other                                                           |                        53,226   | 2.0% |   |                        436,305 | 11.6% |   |                        149,831 | 36.3% |
| Income                    tax expense (benefit)                 | $                    (347,639)                 | -12.9% |   | $                      (168,847) | -4.5% |   | $  307,235 | 74.5% |

----

|   | **2003** | **2002** | **2001** |
|--------|----------|----------|----------|

| Income                  tax expense (benefit):                        Current tax |  $                  (106,637)      |  $                                                 -- |                             $      73,743 |
|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
|        Deferred                  tax                                         |                     (241,002) | (168,847)                                                                                                                   |                         233,492                                                        |
|                                                                                                            | $                  (347,639)            | $                   (168,847)                                                                                          |                       $   307,235                                                 |