Table
of Contents
 
 UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM
10-Q
  (Mark
One)





x
            QUARTERLY REPORT PURSUANT TO
      SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For the
quarterly period ended June 30, 2008


or




o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For
      the transition period from _____ to
_____





Commission
file number:   0-25430





RIDGEWOOD
ELECTRIC POWER TRUST IV


(Exact
Name of Registrant as Specified in Its Charter)





Delaware
            
            22-3324608(State
      of Other Jurisdiction
              of
      Incorporation or Organization)
            
            (I.R.S.
      Employer Identification No.)





1314
      King Street, Wilmington, Delaware
            
            19801(Address
      of Principal Executive Offices)
            
            (Zip
      Code)





(302)
      888-7444(Issuer’s
      Telephone Number, Including Area Code)




Not
      Applicable(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate by check mark whether the
registrant: (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.  Yes xNoo





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definition of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated
fileroAccelerated
filer oNon-accelerated fileroSmaller reporting companyx
 (Do not check if a smaller
reporting company)




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes oNo x





As of June 30, 2008, there were
476.8875 Investor Shares
outstanding.


Table of Contents


FORM
10-Q





TABLE OF CONTENTS





PART I.
            FINANCIAL INFORMATION
            
            PageItem 1.
            Financial Statements
            
            1Item 2.
            Management’s Discussion and Analysis of Financial Condition
      and Results of Operations
            
            8Item 3.
            Quantitative and Qualitative Disclosures About Market
      Risk
            
            10Item 4.
            Controls and Procedures
            
            10PART II.
            OTHER INFORMATIONItem 1.
            Legal Proceedings
            
            10Item 1A.
            Risk Factors
            
            10Item 2.
            Unregistered Sales of Equity Securities and Use of
      Proceeds
            
            10Item 3.
            Defaults Upon Senior Securities
            
            10Item 4.
            Submission of Matters to a Vote of Security
      Holders
            
            10Item 5.
            Other Information
            
            10Item 6.
            Exhibits
            
            11SIGNATURES
            
            
            12







Table of Contents




PARTI.   FINANCIAL INFORMATION





ITEM
1.   FINANCIAL STATEMENTS




RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED BALANCE SHEETS(in
      thousands, except share data)June
      30,
              
              
              December
      31,2008
              
              
              2007(unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
              
              $
              1,272
              
              
              $
              781Accounts
      receivable
              
              
              1,269
              
              
              
              2,083Due
      from affiliates
              
              
              63
              
              
              
              153Prepaid
      expenses and other current assets
              
              
              118
              
              
              
              130Total
      current assets
              
              
              2,722
              
              
              
              3,147Notes
      receivable, affiliates
              
              
              5,465
              
              
              
              5,263Investments
              
              
              6,283
              
              
              
              5,293Plant
      and equipment, net
              
              
              7,260
              
              
              
              7,656Intangibles,
      net
              
              
              954
              
              
              
              1,255Other
      assets
              
              
              450
              
              
              
              450Total
      assets
              
              $
              23,134
              
              
              $
              23,064LIABILITIES
      AND SHAREHOLDERS’ EQUITYCurrent
      liabilities:Accounts
      payable
              
              $
              525
              
              
              $
              461Accrued
      royalty expense
              
              
              224
              
              
              
              466Due
      to affiliates
              
              
              371
              
              
              
              603Total
      current liabilities
              
              
              1,120
              
              
              
              1,530Minority
      interest
              
              
              3,410
              
              
              
              3,962Total  liabilities
              
              
              4,530
              
              
              
              5,492Commitments
      and contingenciesShareholders’
      equity (deficit):Shareholders’
      equity (476.8875 Investor Shares
                issued
      and outstanding)
              
              
              18,687
              
              
              
              17,665Managing
      Shareholder’s accumulated deficit
                (1
      management share issued and outstanding)
              
              
              (83
              )
              
              
              (93
              )Total
      shareholders’ equity
              
              
              18,604
              
              
              
              17,572Total
      liabilities and shareholders’ equity
              
              $
              23,134
              
              
              $
              23,064





The
accompanying notes are an integral part of these condensed consolidated
financial statements.




1
 Table of Contents


RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited,
      in thousands, except per share data)Six
      Months Ended June 30,
              
              
              Three
      Months Ended June 30,2008
              
              
              2007
              
              
              2008
              
              
              2007Power
      generation revenue
              
              $
              3,965
              
              
              $
              3,803
              
              
              $
              1,951
              
              
              $
              1,919Renewable
      attribute revenue
              
              
              1,268
              
              
              
              2,572
              
              
              
              -
              
              
              
              1,300Sublease
      revenue
              
              
              -
              
              
              
              292
              
              
              
              -
              
              
              
              146Total
      revenues
              
              
              5,233
              
              
              
              6,667
              
              
              
              1,951
              
              
              
              3,365Cost
      of revenues
              
              
              4,527
              
              
              
              4,996
              
              
              
              2,037
              
              
              
              2,597Gross
      profit (loss)
              
              
              706
              
              
              
              1,671
              
              
              
              (86
              )
              
              
              768Operating
      expenses:General
      and administrative expenses
              
              
              1,620
              
              
              
              370
              
              
              
              865
              
              
              
              251Management
      fee to Managing Shareholder
              
              
              263
              
              
              
              268
              
              
              
              129
              
              
              
              134Total
      operating expenses
              
              
              1,883
              
              
              
              638
              
              
              
              994
              
              
              
              385(Loss)
      income from operations
              
              
              (1,177
              )
              
              
              1,033
              
              
              
              (1,080
              )
              
              
              383Other
      income:Equity
      in income of Maine Hydro
              
              
              850
              
              
              
              548
              
              
              
              313
              
              
              
              320Equity
      in income of Indeck Maine
              
              
              524
              
              
              
              448
              
              
              
              616
              
              
              
              261Interest
      income, affiliates
              
              
              209
              
              
              
              213
              
              
              
              104
              
              
              
              106Other
      income
              
              
              -
              
              
              
              11
              
              
              
              -
              
              
              
              11Total
      other income
              
              
              1,583
              
              
              
              1,220
              
              
              
              1,033
              
              
              
              698Income
      before minority interest
              
              
              406
              
              
              
              2,253
              
              
              
              (47
              )
              
              
              1,081Minority
      interest in the loss (earnings) of subsidiaries
              
              
              159
              
              
              
              (515
              )
              
              
              318
              
              
              
              (210
              )Net
      income
              
              $
              565
              
              
              $
              1,738
              
              
              $
              271
              
              
              $
              871Managing
      Shareholder – Net income
              
              $
              6
              
              
              $
              17
              
              
              $
              3
              
              
              $
              8Shareholders
      – Net income
              
              
              559
              
              
              
              1,721
              
              
              
              268
              
              
              
              863Net
      income per Investor Share
              
              
              1,172
              
              
              
              3,608
              
              
              
              562
              
              
              
              1,809Distributions
      per Investor Share
              
              
              -
              
              
              
              3,000
              
              
              
              -
              
              
              
              1,000







The
accompanying notes are an integral part of these condensed consolidated
financial statements.




2
 Table of Contents


RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited,
      in thousands)Six
      Months Ended June 30,2008
              
              
              2007Cash
      flows from operating activities:Net
      cash provided by operating activities
              
              $
              884
              
              
              $
              1,241Cash
      flows from investing activities:Capital
      expenditures
              
              
              -
              
              
              
              (29
              )Cash
      flows from financing activities:Cash
      distribution to minority interest
              
              
              (393
              )
              
              
              (428
              )Cash
      distribution to shareholders
              
              
              -
              
              
              
              (1,445
              )Net
      cash used in financing activities
              
              
              (393
              )
              
              
              (1,873
              )Net
      increase (decrease) in cash and cash equivalents
              
              
              491
              
              
              
              (661
              )Cash
      and cash equivalents, beginning of period
              
              
              781
              
              
              
              819Cash
      and cash equivalents, end of period
              
              $
              1,272
              
              
              $
              158















The
accompanying notes are an integral part of these condensed consolidated
financial statements.




3
 Table of Contents




RIDGEWOOD
ELECTRIC POWER TRUST IV
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (unaudited,
dollar amounts in thousands)




1.   BASIS
OF PRESENTATION





The
accompanying unaudited condensed consolidated financial statements have been
prepared pursuant to the rules of the United States Securities and Exchange
Commission (the “SEC”). Certain information and footnote disclosures normally
included in consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have
been condensed or omitted pursuant to SEC rules. These condensed consolidated
financial statements should be read in conjunction with the Ridgewood Electric
Power Trust IV (the “Trust”) Annual Report on Form 10-K for the year ended
December 31, 2007 filed with the SEC on March 21, 2008 (the “2007 Form
10-K”). No significant changes have been made to the Trust’s accounting policies
and estimates disclosed in its 2007 Form 10-K.





In the
opinion of management, the condensed consolidated financial statements as of
June 30, 2008 and for the six and three months ended June 30, 2008 and
2007, include all adjustments (consisting of normal recurring accruals)
necessary for a fair presentation of the consolidated financial position,
results of operations and cash flows for the periods presented. The results of
operations for the six and three months ended June 30, 2008 and 2007 are not
necessarily indicative of the results to be expected for the full year or any
other period.





2.   DESCRIPTION
OF BUSINESS





The Trust
is a Delaware trust formed in September 1994. The Trust began offering shares in
February 1995 and concluded its offering in September 1996. The objective of the
Trust is to provide benefits to its shareholders through a combination of
distributions of operating cash flow and capital appreciation. The Managing
Shareholder of the Trust is Ridgewood Renewable Power LLC (“RRP” or the
“Managing Shareholder”). The Trust has been organized to invest primarily in
independent power generation facilities located in the US. The projects owned by
the Trust have characteristics that qualify the projects for government
incentives.





The
Trust’s accompanying condensed consolidated financial statements include the
accounts of the Trust and its majority-owned subsidiary – Ridgewood Providence
Power Partners, L.P. (“Ridgewood Providence”). The Trust’s condensed
consolidated financial statements also include the Trust’s 50% interest in
Ridgewood Maine Hydro Partners, L.P. (“Maine Hydro”) and its 25% interest in
Ridgewood Indeck Maine Energy, LLC (“Indeck Maine”), which are accounted for
under the equity method of accounting, as the Trust has the ability to exercise
significant influence but does not control the operating and financial policies
of these entities.





The Trust
owns 64.3% interest in Ridgewood Providence and the remaining 35.7% minority
interest is owned by Ridgewood Electric Power Trust III (“Trust III”). The
interest of Trust III is presented as minority interest in the condensed
consolidated financial statements.





The
Managing Shareholder announced that it intends to market Maine Hydro and Indeck
Maine for sale. There can be no assurance that any such sales will occur. These
assets did not meet the qualifications to be classified as “held for sale” at
June 30, 2008.





3.  
RECENT ACCOUNTING PRONOUNCEMENTS





SFAS
157





In
September 2006, the Financial Accounting Standards Board (“FASB”) issued
Statement of Financial Accounting Standard (“SFAS”) No. 157, Fair Value Measurements
(“SFAS 157”), to define fair value, establish a framework for measuring fair
value in accordance with generally accepted accounting principles and expand
disclosures about fair value measurements. SFAS 157 requires quantitative
disclosures using a tabular format in all periods (interim and annual) and
qualitative disclosures about the valuation techniques used to measure fair
value in all annual periods. In February 2008, FASB issued Staff Position 157-2,
Effective Date of FASB
Statement No. 157, which delays the effective date of SFAS 157
for non-financial assets and non-financial liabilities for the Trust until
January 1, 2009, except for items that are recognized or disclosed at fair value
in the financial statements on a recurring basis. The Trust adopted SFAS
157 for financial assets and financial liabilities effective January 1, 2008,
with no material impact on its condensed consolidated financial
statements.  The Trust is currently evaluating the impact of adopting
SFAS 157 for non-financial assets and non-financial liabilities on
its condensed consolidated financial statements.





4
 Table of Contents




RIDGEWOOD
ELECTRIC POWER TRUST IV
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (unaudited,
dollar amounts in thousands)


SFAS
159





In
February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities (“SFAS 159”), which expands
opportunities to use fair value measurements in financial reporting and permits
entities to choose to measure many financial instruments and certain other items
at fair value. The Trust adopted SFAS 159 effective January 1, 2008, with no
material impact on its condensed consolidated financial statements.





SFAS
160





In
December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements — an amendment of ARB No. 51
(“SFAS 160”). SFAS 160 requires that ownership interests in subsidiaries
held by parties other than the parent, and the amount of consolidated net
income, be clearly identified, labeled, and presented in the consolidated
financial statements within equity, but separate from the parent’s equity.
It also requires once a subsidiary is deconsolidated, any retained


noncontrolling
equity investment in the former subsidiary be initially measured at fair value.
Sufficient disclosures are required to clearly identify and distinguish between
the interests of the parent and the interests of the noncontrolling owners. SFAS
160 will become effective for the Trust beginning January 1, 2009. The
Trust is currently evaluating the impact of adopting SFAS 160 on
its condensed consolidated financial statements.





SFAS
162





In
May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted
Accounting Principles (“SFAS 162”).  SFAS 162 identifies the sources
of accounting principles and the framework for selecting principles to be used
in the preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles in the
United States.  This statement shall be effective 60 days following the
SEC’s approval of the Public Company Accounting Oversight Board’s amendments to
AU section 411, The Meaning of
Present Fairly in Conformity with Generally Accepted Accounting
Principles. The Trust is currently evaluating the impact of adopting SFAS
162 on its condensed consolidated financial statements.





4.   INVESTMENTS





Maine
Hydro





Summarized
statements of operations data for Maine Hydro for the six and three months ended
June 30, 2008 and 2007 were as follows:




Six
      Months Ended June 30,
              
              
              Three
      Months Ended June 30,2008
              
              
              2007
              
              
              2008
              
              
              2007Revenues
              
              $
              3,174
              
              
              $
              2,735
              
              
              $
              1,355
              
              
              $
              1,521Gross
      profit
              
              
              1,862
              
              
              
              1,344
              
              
              
              701
              
              
              
              762Income
      from operations
              
              
              1,699
              
              
              
              1,096
              
              
              
              626
              
              
              
              640Net
      income
              
              
              1,699
              
              
              
              1,096
              
              
              
              626
              
              
              
              640Trust
      share of income in Maine Hydro
              
              
              850
              
              
              
              548
              
              
              
              313
              
              
              
              320




5
 Table of Contents
  RIDGEWOOD
ELECTRIC POWER TRUST IV
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (unaudited,
dollar amounts in thousands)
  Indeck
Maine





Summarized
statements of operations data for Indeck Maine for the six and three months
ended June 30, 2008 and 2007 were as follows:




Six
      Months Ended June 30,
              
              
              Three
      Months Ended June 30,2008
              
              
              2007
              
              
              2008
              
              
              2007Revenues
              
              $
              21,165
              
              
              $
              18,329
              
              
              $
              11,707
              
              
              $
              9,194Gross
      profit
              
              
              2,660
              
              
              
              2,172
              
              
              
              2,138
              
              
              
              1,129Income
      from operations
              
              
              2,075
              
              
              
              1,909
              
              
              
              1,749
              
              
              
              1,013Net
      income
              
              
              1,332
              
              
              
              1,185
              
              
              
              1,369
              
              
              
              654Trust
      share of income in Indeck Maine
              
              
              524
              
              
              
              448
              
              
              
              616
              
              
              
              261





During
the second quarter of 2008, management fees due to Indeck’s board members
totaling $933 was forgiven by the members. Indeck Maine has recorded this
forgiveness as a capital contribution. The Trust and Trust V have each recorded
this forgiveness as a capital contribution of $467.





In
accordance with the Indeck Maine operating agreement, losses and depreciation
have been allocated to Indeck Energy Services (“IES”) to the extent of it
adjusted capital account balance.  Prior year losses and depreciation,
in excess of the amount allocated to IES, have been allocated equally between
the Trust and Trust V. In addition, profits are allocated equally between the
Trust and Trust V until the priority return from operations is received. As of
June 30, 2008, the cumulative priority return was approximately
$28,000.





The Trust
assigned the excess purchase price over the net assets acquired to fixed assets.
The Trust depreciates the fixed assets over their remaining useful lives using
the unit of production method.  Depreciation expense of $142 and $145
for the six months ended June 30, 2008 and 2007, respectively, and depreciation
expense of $69 and $67 for the three months ended June 30, 2008 and 2007,
respectively, was included in the equity income from Indeck Maine in the
condensed consolidated statements of operations.





5.   COMMITMENTS AND
CONTINGENCIES





Ridgewood
Providence, Indeck Maine and Ridgewood Rhode Island Generation, LLC, an
affiliate of Ridgewood Providence and Indeck Maine (collectively, the
“Companies”) have an agreement with a power marketer for which they are
committed to sell a portion of their Renewable Portfolio Standards Attributes
(“RPS Attributes”) derived from their electric generation. The agreement
provides such power marketer with six separate annual options to purchase such
RPS Attributes from 2004 through 2009 at fixed prices. If the Companies fail to
supply the required number of RPS Attributes, liquidated damages may be
assessed. In accordance with the terms of the agreement, if the power marketer
elects to exercise an annual option and the Companies produce no renewable
attributes for such option year, the Companies face maximum liquidated damages,
which are adjusted annually for the change in the consumer price index,
among other things, of up to approximately $3,800, measured using factors
in effect at December 31, 2007, for that option year and any other year in which
an option has been exercised and insufficient renewable attributes have been
produced. Ridgewood Providence and Indeck Maine are liable for 8% and 70% of the
total liquidated damages, respectively, but may each be liable up to 100% in the
event of default by any of the Companies. In addition, the Trust (together with
several other Funds managed by the Managing Shareholder) is a guarantor of the
Companies’ obligations under the agreement and as such, could be liable for a
maximum percentage of the Companies’ liabilities under the agreement. In the
fourth quarter of 2007, the power marketer notified the Companies that
it has elected to purchase the output for 2008 as specified in the
agreement. As of June 30, 2008 and 2007, the Companies have satisfied and
delivered RPS Attributes as prescribed in the agreements and therefore no
liquidated damages were incurred. In August 2008, the agreement with the
power marketer was amended and the security deposit with the power marketer was
increased by $6,121 ($3,000 of which was provided by the Trust) in exchange
for the release of, among other things, certain underlying assets that have been
sold, or are being marketed for sale, as collateral for the obligations of the
Companies under the agreement.  The agreement, as amended also limits
the dividends and distributions and the incurrence of debt by Ridgewood
Providence.  The amendment also defers the timing on the payment for
the RPS Attributes and eliminates the limits on the liability of the Trusts
under the guarantees. In connection with this deposit, the Managing Shareholder
loaned $3,000 to the Trust at the Managing Shareholder’s cost of borrowing. It
is expected that the loan will be repaid as the deposit is released by the power
marketer, or if Indeck Maine is sold, from the Trust’s share of the net proceeds
from the sale.


6
 Table of Contents
  RIDGEWOOD
ELECTRIC POWER TRUST IV
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (unaudited,
dollar amounts in thousands)


On August
16, 2006, the Managing Shareholder of the Trust and affiliates of the Trust
filed lawsuits against the former independent registered public accounting firm
for the Trust and several affiliated entities, Perelson Weiner, LLP (“Perelson
Weiner”), in New Jersey Superior Court. The suits alleged professional
malpractice and breach of contract in connection with audit and accounting
services performed for the Trusts and other plaintiffs by Perelson Weiner. On
October 20, 2006, Perelson Weiner filed a counterclaim against the Trust and
other plaintiffs alleging breach of contract due to unpaid invoices with a
combined total of approximately $1,200. Discovery is ongoing and no trial date
has been set. The costs and expenses of the litigation are being paid for by the
Managing Shareholder and affiliated management companies and not the underlying
investment funds, including the Trust.





The Trust
is subject to legal proceedings involving ordinary and routine claims related to
its business. The ultimate legal and financial liability with respect to
such matters cannot be estimated with certainty and requires the use of
estimates in recording liabilities for potential litigation settlements.
Estimates for losses from litigation are disclosed if considered reasonably
possible and accrued if considered probable after consultation with outside
counsel. If estimates of potential losses increase or the related facts and
circumstances change in the future, the Trust may be required to record
additional litigation expense. While it is not possible to predict the
outcome of the litigation discussed above with certainty and some lawsuits,
claims or proceedings may be disposed of unfavorably to the Trust, based on its
evaluation of matters which are pending or asserted, the Trust’s management
believes the disposition of such matters will not have a material adverse effect
on the Trust’s business or its financial statements.










7
 Table of Contents





ITEM
2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS




The
purpose of this discussion and analysis of the operating results and financial
condition as of June 30, 2008 is intended to help readers analyze the
accompanying condensed consolidated financial statements, notes and other
supplemental information contained in this document.  Results of
operations for the six and three months ended June 30, 2008 are not
necessarily indicative of results to be attained for any other period. This
discussion and analysis should be read in conjunction with the accompanying
condensed consolidated financial statements, notes and other supplemental
information included elsewhere in this report and
Item 7.  “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” of the Trust’s 2007 Form 10-K.





Forward-Looking
Statements




Certain
statements discussed in this item and elsewhere in this Quarterly Report on Form
10-Q constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
generally relate to the Trust’s plans, objectives and expectations for future
events and include statements about the Trust’s expectations, beliefs, plans,
objectives, intentions, assumptions and other statements that are not historical
facts. These statements are based upon management’s opinions and estimates
as of the date they are made. Although management believes that the expectations
reflected in these forward-looking statements are reasonable, such
forward-looking statements are subject to known and unknown risks and
uncertainties that may be beyond the Trust’s control, which could cause actual
results, performance and achievements to differ materially from the results,
performance and achievements projected, expected, expressed or implied by the
forward-looking statements. Examples of events that could cause actual results
to differ materially from historical results or those anticipated include the
outcome of the litigation described in Part I, Item 1, Note 5. “Commitments
and Contingencies” of this report, changes in political and economic conditions,
federal or state regulatory structures, government mandates, the ability of
customers to pay for energy received, supplies and prices of fuels, operational
status of generating plants, mechanical breakdowns, volatility in the price for
electric energy, natural gas or renewable energy. Additional information
concerning the factors that could cause actual results to differ materially from
those in the forward-looking statements is contained in Item 1A. “Risk
Factors” and Item 7. “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” of the Trust’s 2007 Form 10-K.
The Trust undertakes no obligation to publicly revise any forward-looking
statements or cautionary factors, except as required by law.





Critical
Accounting Policies and Estimates





The
following discussion and analysis of the Trust’s financial condition and
operating results is based on its condensed consolidated financial
statements.  The preparation of this Quarterly Report on Form 10-Q
requires the Trust to make estimates and assumptions that affect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the Trust’s condensed consolidated financial
statements, and the reported amount of revenue and expenses during the reporting
period. Actual results may differ from those estimates and
assumptions.  No material changes have been made to the Trust’s
critical accounting policies and estimates disclosed in its 2007 Form
10-K.




Results
of Operations and Changes in Financial Condition





Six
months ended June 30, 2008 compared to the six months ended June 30,
2007





The Trust
recorded revenues of $5.2 million for the six months ended June 30, 2008
compared to $6.7 million for the same period in 2007, a decrease of
approximately $1.5 million or 21.5%.  This decrease was primarily due
to a decrease in renewable attribute revenue of $1.3 million or 51%, resulting
from unsold, but produced, renewable energy credits due to low market demand. In
addition, a decrease in sublease revenue of $0.3 million in the 2008
period was due to termination of the sublease agreement with Central Gas
Limited Partnership effective December 31, 2007.





Cost of
revenues decreased $0.5 million, or 9.4%, from $5 million for the six months
ended June 30, 2007 to $4.5 million for the same period in 2008. This decrease
was primarily attributable to a decrease in royalty expenses resulting from
lower renewable attribute revenues for the six months ended June 30,
2008.





Gross
profit decreased $1 million, or 57.7%, from gross profit of $1.7 million for the
six months ended June 30, 2007 to $0.7 million for the same period in 2008
primarily due to lower margin as a result of decreased renewable attribute
revenue.





General
and administrative expenses increased approximately $1.2 million from $0.4
million for the six months ended June 30, 2007 to $1.6 million for the same
period in 2008. This increase was primarily attributable to higher professional
fees.





Forthesix months ended June 30,2008, the Trust recorded
equity income of
approximately $0.8million
from its investment in Maine Hydro compared to $0.5million for the same period in 2007.
The increase in equity income of $0.3 million was primarily the result of
increased revenues from higher production in the 2008periodas compared tothe same period in2007.




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The Trust
recorded a minority interest in the loss of subsidiaries of $0.2 million for the
six months ended June 30, 2008 compared to earnings of $0.5 million for the same
period in 2007. This decrease of $0.7 million was due to a decrease in the
net earnings of Ridgewood Providence in the 2008 period compared to 2007 as a
result of decreased renewable attribute revenue.





Total
assets at June 30, 2008 were $23.1 million, which were comparable to total
assets at December 31, 2007. The increases of $0.5 million in cash and cash
equivalents, $0.2 million in notes receivable, affiliates, and $1 million in
investments was offset by decreases of $0.8 million in accounts receivable, $0.4
million in plant and equipment, approximately $0.4 million in intangibles and
$0.1 million in due from affiliates. Total liabilities decreased by $1
million from $5.5 million at December 31, 2007 to $4.5 million at June 30, 2008.
This decrease was primarily due to decreases of $0.2 million in due to
affiliates, $0.2 million in royalty accrual, and $0.6 million in minority
interest.





Three
months ended June 30, 2008 compared to the three months ended June 30,
2007





The Trust
recorded revenues of $2 million for the three months ended June 30, 2008
compared to $3.4 million for the same period in 2007, a decrease of $1.4 million
or 42%. This decrease was primarily due to a decrease of $1.3 million in
renewable attribute revenue resulting from unsold, but produced, renewable
energy credits due to low market demand. In addition, a decrease in sublease
revenue of $0.1 million in the 2008 period was due to the termination of
the sublease agreement with Central Gas Limited Partnership effective December
31, 2007.





Cost of
revenues decreased $0.6 million, or 21.6%, from $2.6 million for the three
months ended June 30, 2007 to $2 million for the same period in 2008. This
decrease was primarily attributable a decrease in royalty expenses resulting
from lower renewable attribute revenues in the 2008 period.





The Trust
recorded a gross loss of $0.1 million for the three months ended June 30, 2008
compared to a gross profit of $0.8 million for the same period in 2007 primarily
due to lower margin as a result of decreased renewable attribute
revenue.





General
and administrative expenses increased $0.6 million from $0.3 million for the
three months ended June 30, 2007 to $0.9 million for the same period in 2008.
This increase was primarily attributable to higher professional
fees.





For the
three months ended June 30 2008, the Trust recorded equity income of $0.6
million from its investment in Indeck Maine compared to $0.3 million for the
same period in 2007. The increase in equity income of approximately $0.3 million
in the 2008 period was primarily attributable to an increase in power
generation revenue resulting from higher production rates in the 2008
period.





The Trust
recorded a minority interest in the loss of subsidiaries of $0.3 million for the
three months ended June 30, 2008 compared to earnings of $0.2 million for the
same period in 2007. This was due to a decrease in the net earnings of
Ridgewood Providence in the 2008 period compared to 2007 as a result of
decreased renewable attribute revenue.





Liquidity
and Capital Resources





Six
months ended June 30, 2008 compared to the six months ended June 30,
2007





At June
30, 2008, the Trust had cash and cash equivalents of $1.3 million,
an increase of $0.5 million from $0.8 million at December 31, 2007. The
cash flows for the six months ended June 30, 2008 were $0.9 million provided by
operating activities and $0.4 million used in financing activities.





For
the six months ended June 30, 2008, the Trust’s operating activities
provided cash of $0.9 million, as compared to $1.2 million for the same period
in 2007.  The decrease in cash provided by operating activities of
approximately $0.3 million in the 2008 period was primarily due to
decreased cash distributions from Maine Hydro.





For
the six months ended June 30, 2008, the Trust used cash of $0.4 million in
financing activities for cash distributions to minority interest.  For
the same period in 2007, the Trust used cash of approximately $1.9 million
in financing activities, as a result of approximately $1.5 million and $0.4
million used for cash distributions to shareholders and minority interest,
respectively.





Future
Liquidity and Capital Resource Requirements





Under an
agreement with a power marketer, Ridgewood Providence is not permitted to make
dividends or distributions to its owners nor is it able to incur new
indebtedness. Notwithstanding these restrictions, the Trust expects cash flows
from operating activities, along with existing cash, cash equivalents and
borrowing capabilities to be sufficient to provide working capital and fund
capital expenditures for the next 12 months.





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 Table of Contents




Off-Balance
Sheet Arrangements and Contractual Obligations and Commitments





The
Trust, along with other Trusts managed by the Managing Shareholder, are jointly
and severally liable for liquidated damages if Ridgewood Providence and
affiliates fail to produce RPS Attributes under an agreement with a power
marketer, as more fully described in Note 5 to the Trust’s condensed
consolidated financial statements included in Part I. Item 1. “Financial
Statements” of this Form 10-Q.





ITEM
3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK




Not
required.




ITEM
4.   CONTROLS AND PROCEDURES




In
accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), the Trust’s Chief Executive Officer and Chief
Financial Officer evaluate the effectiveness of the Trust’s disclosure controls
and procedures, as defined in Exchange Act Rule 13a-15(e). Based on this
evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer
concluded that the Trust’s disclosure controls and procedures were effective as
of the end of the period covered by this report to ensure that information
required to be disclosed by a registrant in reports filed pursuant to Exchange
Act are recorded, processed, summarized and reported within the time periods
specified in the SEC rules and forms and that information required to be
disclosed by a registrant is accumulated and communicated to senior management
so as to allow timely decisions regarding required disclosure.




Changes
in Internal Control over Financial Reporting




The
Trust’s Chief Executive Officer and Chief Financial Officer have concluded that
there was no change in the Trust's internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that occurred
during the quarter ended June 30, 2008 that has materially affected, or is
reasonably likely to materially affect, the Trust’s internal control over
financial reporting.





PART
II.   OTHER INFORMATION





ITEM
1.   LEGAL PROCEEDINGS





There
have been no material changes to the legal proceedings disclosed in the Trust’s
2007 Form 10-K.





ITEM
1A.   RISK FACTORS





There
have been no material changes to the risk factors disclosed in the Trust’s 2007
Form 10-K.





ITEM
2.   UNREGISTERED SALES OF EQUITY SECURITIES AND
USE OF PROCEEDS





None.




ITEM
3.   DEFAULTS UPON SENIOR SECURITIES





None.





ITEM
4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS





None.





ITEM
5.   OTHER INFORMATION





None.




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ITEM
6.   EXHIBITS





Exhibit
      No.
            
            Description31.1
            *
            Certification
      of Randall D. Holmes, Chief Executive Officer of the Registrant, pursuant
      to Securities Exchange Act Rule 13a-14(a).31.2
            *
            Certification
      of Jeffrey H. Strasberg, Chief Financial Officer of the Registrant,
      pursuant to Securities Exchange Act Rule 13a-14(a).32
            *
            Certifications
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      The Sarbanes-Oxley Act of 2002, signed by Randall D. Holmes, Chief
      Executive Officer of the Registrant, and Jeffrey H. Strasberg, Chief
      Financial Officer of the
Registrant.





*           Filed
herewith.










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SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.






RIDGEWOOD ELECTRIC
      POWER TRUST IVDate:
      August 12, 2008
            By:
            /s/ 
      Randall D. HolmesRandall
      D. HolmesPresident
      and  Chief Executive Officer(Principal
      Executive Officer)






Date:
      August 12, 2008
            By:
            /s/ 
      Jeffrey H. StrasbergJeffrey
      H. StrasbergExecutive
      Vice President and Chief Financial Officer(Principal
      Financial and Accounting Officer)











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