UNITED STATES  
  
SECURITIES AND EXCHANGE COMMISSION  
  
Washington, D.C. 20549  
  
FORM 10-Q  
  
  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15
OF THE SECURITIES EXCHANGE ACT OF 1934  
  
For the quarterly period ended        September 30, 1996  
  
Commission File Number     0-25430  
  
RIDGEWOOD ELECTRIC POWER TRUST IV
(Exact name of registrant as specified in its charter.)
  
Delaware, U.S.A.                    22-3324608      
(State or other jurisdiction of          (I.R.S. Employer  
incorporation or organization)          Identification No.)  
   
947 Linwood Avenue, Ridgewood, New Jersey       07450-2939   
 
(Address of principal executive offices)                 
(Zip Code)  
  
Registrant's telephone number, including area code:  (201)
447-9000  
  
     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 [X]        NO [ ]  
<PAGE>
  

PART I. - FINANCIAL INFORMATION
  
<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST IV
BALANCE SHEETS
(Unaudited)
<CAPTION>

September 30,     December 31,
                             1996            1995
<S>                   <C>              <C>

Assets

Cash                   $ 24,587,994     $ 12,998,463
Interest receivable         100,000           59,464
Investments in
  power project
  partnerships           13,515,964          353,619
Equipment in storage        469,018          455,182
Other assets           ______34,242     ______23,435
Total assets           $ 38,707,218     $ 13,890,163

Liabilities and
 Shareholders' 
 Equity

Accounts payable
  and accrued
  expenses                 $ 76,644         $ 34,413
Due to affiliate                  0          353,619
                             76,644          388,032
Shareholders' equity
  (162.1 shares out-
  standing at 
  12/31/95 and 
  481.17 at 9/30/96)     38,642,795       13,503,692
Managing share-
  holder's accumu-
  lated deficit          ___(12,221)      ____(1,561)
Total shareholders'
  equity                 38,630,574       13,502,131

Total liabilities
  and shareholders'
  equity               $ 38,707,218     $ 13,890,163
<FN>
See Accompanying Notes to Financial Statements  
</TABLE>
<PAGE>

<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST IV
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS AND QUARTER 
ENDED SEPTEMBER 30, 1996 AND THE INTERIM PERIOD
AND QUARTER ENDED SEPTEMBER 30, 1995
(Unaudited)
<CAPTION>



Period beginning


Nine months
Quarter
February 6, 1995
Quarter

ended
ended
and ended
ended

September 30,
September 30,
September 30,
September 30,

1996
1996
1995
1995

<S>                            <C>              <C>          
    <C>             <C>
Income from power genera-
  tion projects                 $ 242,057          $ 7,925   
          $ 0            $ 0
Dividend and interest
  income                          599,893          223,344   
      271,368        244,000
Total income                      841,950          231,269   
      271,368        244,000

Management fee                    480,550          258,730   
            0              0
Project due diligence expense       1,734            1,734   
       50,000              0
Administrative and
  other expenses                   53,018           12,252   
       64,566         64,452
Investment fee                    626,561          105,630   
      252,497        151,190
Total expenses                  1,161,863          375,925   
      367,063        215,642

Net income (loss)              ($ 319,913)      ($ 147,077)  
    ($ 95,695)      $ 28,358

<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>

<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST IV
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS AND QUARTER ENDED SEPTEMBER 30, 1996 AND 
THE INTERIM PERIOD AND QUARTER ENDED SEPTEMBER 30, 1995
(Unaudited)
                           

<CAPTION>



Period beginning


Nine months
Quarter
February 6, 1995
Quarter

ended
ended
and ended
ended

September 30,
September 30,
September 30,
September 30,

1996
1996
1995
1995

<S>                          <S>            <C>              
  <C>            <C>
Cash flows from operating
  activities:
Net income                     ($ 319,913)      ($ 147,077)  
    ($ 95,695)      $ 28,358

Adjustments to
  reconcile net income
  to cash provided (used)
  in operating activities:
Changes in assets &
  liabilities:
Decrease (increase)in
  receivables                     (40,536)         (40,000)  
     (122,525)     (104,515)
Decrease (increase) in
  other assets                    (10,807)          (9,734)  
            0         9,775
Increase (decrease) in
  accounts payable            ___(311,388)      __ (50,689)  
      216,714       160,314

Total adjustments                (362,731)        (100,423)  
       94,189        65,574

Net cash provided by
  (used in) operating
  activities other
  than investments               (682,644)        (233,664)  
       (1,506)       93,932
Purchase of investments
  in power generation
  partnerships                (13,162,345)        (266,403)  
            0             0
Purchase of 
  operating parts                 (18,836)         (13,836)  
     (472,084)     (472,084)
Net cash provided by
  (used in) operating
  activities                  (13,858,825)        (527,739)  
     (473,590)     (378,152)
                             
Cash provided by (used by)
  financing activities:
  Net proceeds from the sale
     of Trust shares           26,679,930        3,853,816   
   10,616,267     5,212,851
  Cash distributions to
    Shareholders               (1,231,574)      __(427,156)  
      ______0       ______0
                               25,448,356        3,426,660   
   10,616,267     5,212,851
                                
                                
Net increase (decrease)
  in cash and cash equivalents 11,584,531        2,898,920   
   10,142,677     4,834,699
Cash and cash equivalents
  - Beginning of period       _12,998,463       21,689,074   
       _____0     5,307,978
Cash and cash equivalents
  - End of period            $ 24,587,994     $ 24,587,994   
 $ 10,142,677 $ (10,142,677)
                                
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>

RIDGEWOOD ELECTRIC POWER TRUST IV
NOTES TO FINANCIAL STATEMENTS                            

1.     Organization and Purpose


Nature of business

Ridgewood Electric Power Trust II (the "Trust") was formed 
as a Delaware business trust in September 1994 by Ridgewood 
Energy Holding Corporation acting as the Corporate Trustee.  
The managing shareholder of the Trust is Ridgewood Power 
Corporation.  The Trust began offering shares on February 6, 
1995.  The Trust commenced operations on May 10, 1995.  Its 
offering ofTrust shares will end on August 15, 1996.

The Trust has been organized to invest in independent power 
generation facilities and in the development of these 
facilities.  These independent power generation facilities 
include cogeneration facilities which produce electricity, 
thermal energy and other power plants that use various fuel 
sources (except nuclear).  The power plants will sell 
electricity and thermal energy to utilities and industrial 
users.

"Business Development Company" election

Effective March 24, 1995, the Trust had elected to be 
treated as a "Business Development Company" under the 
Investment Company Act of 1940 and registered its shares 
under the Securities Exchange Act of 1934. On October 3, 
1996, pursuant to authorization from a majority of the 
Shareholders, the Trust filed a withdrawal of election to be 
a business development company with the Securities and 
Exchange Commission, which terminated its status as a 
business development company. 


2.       Summary of Significant Accounting Policies

Investments in project development and power generation
limited partnerships

The Trust holds investments in power generation projects 
which are stated at fair value.  Due to the illiquidity of 
the investments, the fair values of the investments are 
assumed to equal cost unless current available information 
provides a basis for adjusting the value of the investments.

<PAGE>

RIDGEWOOD ELECTRIC POWER TRUST IV
NOTES TO FINANCIAL STATEMENTS                            

          Fair values as of
         9/30/96    12/31/95

Power generation limited
 partnerships:
  Pump Services     $    399,561   $ 353,619
  Ridgewood Providence Power
    Partners, L.P.    12,850,000           0
     TOTALS    $ 13,249,561   $ 353,619

Revenue recognition
Income from investments is recorded when received.  
Interest and dividend income are recorded as earned.

Offering costs 

Costs associated with offering Trust shares (selling 
commissions, distribution and offering costs) are reflected 
as a reduction of the shareholders' capital contributions.  

Cash and cash equivalents

The Trust considers monies invested in a U.S. Treasury Bills 
Fund with daily liquidation privileges to be a cash 
equivalent.

Electric generating equipment

The Trust owns certain used electric power equipment which 
is stated at fair value.  Due to the difficulty of 
determining the equipment's fair value, the fair value is 
assumed to equal cost unless current available information 
provides a basis for adjusting the value of the equipment.  

Income taxes

No provision is made for income taxes in the accompanying 
financial statements as the income or loss of the Trust is 
included in the tax returns of the individual shareholders. 

Reclassification     

Certain items in previously issued financial statements have 
been reclassified for comparative purposes.

<PAGE>


RIDGEWOOD ELECTRIC POWER TRUST IV
NOTES TO FINANCIAL STATEMENTS                          
                                       

3.          Investment in Power Generation Projects

California Pumping Project

On December 31, 1995, the Trust acquired a package of 
natural gas fueled diesel engines which drive deep 
irrigation well pumps in Ventura County, California from an 
affiliated trust.  The engines' shaft horsepower-hours are 
sold at a discount from the equivalent kilowatt hours of 
electricity.  The cost of the projects is $317 per 
equivalent kilowatt and the Trust receives a distribution of 
$0.02 per equivalent kilowatt hour up to 3000 running hours 
per year and $0.01 per equivalent kilowatt hour for each 
additional running hour per year.  The cost of the 
investment was $353,619 which was be paid in 1996.  The 
operator pays for fuel, maintenance, repair and replacement.

Northeast Landfill Power Joint Venture

The Trust, together with Ridgewood Electric Power Trust III, 
formed a partnership, Ridgewood Providence Power Partners, 
L.P. ("RPLP") to acquire certain of the assets of Northeast 
Landfill Power Joint Venture which owns and operates a 12.3 
(net) megawatt landfill gas fired electric generation 
facility located in Johnston, Rhode Island.  This 
acquisition was completed on April 16, 1996.  The Trust's 
investment, including provision of funds to perform post-
acquisition improvements to the plant and increase the 
salable electric power pursuant to a new 2 mw power sale 
agreement with the same power purchaser, was about $12.9 
million for a 64% interest in RPLP.  Ridgewood Electric 
Power Trust III invested about $7.1 million for a 36% 
interest.  As part of the acquisition cost, RPLP assumed 
three non-recourse notes, totaling $6.3 million payable to 
insurance companies, maturing in September 2004, with a 9.6% 
interest rate.  The monthly installments total about $1.1 
million annually.

4.          Electric Power Equipment

The Trust purchased, from an affiliated entity, various used 
electric power generation equipment to be held for resale 
or, in the event a buyer is not found, for use in potential 
power generation projects.  The equipment is held in 
storage.  

RIDGEWOOD ELECTRIC POWER TRUST IV
MANAGEMENT'S DISCUSSION AND  
ANALYSIS OF FINANCIAL CONDITION AND  
RESULTS OF OPERATIONS  

Nine months ended September 30, 1996 versus period beginning 
February 6, 1995 and ended September 30, 1995 

This Quarterly Report on Form 10-Q, like some other 
statements made by the Trust from time to time, has forward-
looking statements.  These statements discuss business 
trends and other matters relating to the Trust's future 
results and the business climate.  In order to make these 
statements, the Trust has had to make assumptions as to the 
future.  It has also had to make estimates in some cases 
about events that have already happened, and to rely on data 
that may be found to be inaccurate at a later time.  Because 
these forward-looking statements are based on assumptions, 
estimates and changeable data, and because any attempt to 
predict the future is subject to other errors, what happens 
to the Trust in the future may be materially different from 
the Trust's statements here.  

The Trust therefore warns readers of this document that they 
should not rely on these forward-looking statements without 
considering all of the things that could make them 
inaccurate.  The Trust's other filings with the Securities 
and Exchange Commission and its Confidential Memorandum 
discuss many (but not all) of the risks and uncertainties 
that might affect these forward-looking statements.  

Some of these are changes in political and economic 
conditions, federal or state regulatory structures, 
government taxation, spending and budgetary policies, 
government mandates, demand for electricity and thermal 
energy, the ability of customers to pay for energy received, 
supplies of fuel and prices of fuels, operational status of 
plant, mechanical breakdowns, availability of labor and the 
willingness of electric utilities to perform existing power 
purchase agreements in good faith.  

By making these statements now, the Trust is not making any 
commitment to revise these forward-looking statements to 
reflect events that happen after the date of this document 
or to reflect unanticipated future events.


Results of Operations  
  
No income or expenses were incurred by the Trust prior to 
March 31, 1995, because sales in the offering had not 
attained the minimum level required for the Trust to begin 
operations.  The Trust's income of $841,950 for the period 
ended September 30, 1996 reflects $600,000 of interest 
income along with distributions from the limited 
partnerships owning the Northeast Landfill generating 
project, located near Providence, Rhode Island, and the 
California pumping project described in Note 3 to the 
financial statements.  The expenses of $1,162,000 for the 
nine months just ended primarily reflect the $626,651 one-
time investment fee (equal to 2% of and paid from capital 
contributions) and the annual management fee of $480,550 
(2.5% of net assets), payable to the Managing Shareholder 
for the first time in 1996 with the commencement of business 
operations. 

The Trust does not consolidate its financial statements with 
those of the Projects it owns and does not include the 
Projects' revenue, expense and other items in its financial 
statements.  Revenue from Projects is only recognized as it 
is received as distributions by the Trust, and thus revenues 
may fluctuate as the result of delays or accelerations of 
distributions from Projects. 

Liquidity and Capital Resources  
  
As of September 30, 1996, the closing date of its offering 
of securities, the Trust had raised approximately $39.9 
million of funds from its offering, net of offering fees and 
expenses.  The Trust has invested approximately $12.9 
million in the acquisition of a 64% interest in a landfill 
gas electric generation station at Johnston, Rhode Island, 
approximately $400,000 in the pump services project and 
approximately $500,000 in electric generating equipment.  
The Trust currently has approximately $26.5 million 
available for additional investments.  The Trust believes 
that those funds are adequate for the completion of the 
Trust's investment program.

The Trust has negotiated to purchase at least a 50% interest 
in 19 hydroelectric plants located in Maine and New 
Hampshire for a total acquisition cost of $9 million. In 
October 1996 the Trust entered into a binding agreement to 
purchase a 50% interest in the 14 plants located in Maine.  
Closing is conditioned upon receipt of ministerial approvals 
from the Federal Energy Regulatory Commission, which are 
scheduled to be received in late November 1996.  Closing 
will occur immediately after receipt.  The purchase price 
for the Maine plants is approximately $6,500,000, plus or 
minus closing adjustments.  Purchase of the New Hampshire 
plants is subject to resolution of regulatory issues, which 
are being addressed currently.  The Trust intends to cause 
the remaining 50% interest in the Maine and New Hampshire 
plants to be purchased by Ridgewood Electric Power Trust V, 
a similar investment program sponsored by the Managing 
Shareholder, which commenced its offering of shares in 
spring 1996.


Certain Industry Trends

The industry trend toward deregulation of the electric power 
generating and transmission industries has accelerated after 
the adoption of Order 888 by the Federal Energy Regulatory 
Commission ("FERC") on April 24, 1996.  A number of major 
states, including California, have adopted proposals to 
allow "retail wheeling," which would allow any qualified 
generator to use utility transmission and distribution 
networks to sell electricity directly to utility customers.  
Other states, such as Massachusetts, New Hampshire and New 
York, are preparing their own initiatives.  As a result, 
profound changes in the industry are occurring, marked by 
consolidations of utilities, large scale spin-offs or sales 
of generating capacity, reorganizations of power pools and 
transmission entities, and attempts by electric utilities to 
recover stranded costs and alter power purchase contracts 
with independent power producers such as the Trust.

It is too early to predict the effects of these trends and 
others on the Trust's business.  A critical issue for the 
Trust, however, is whether any action will be taken to 
modify its existing power purchase contracts or to shift 
costs to independent power producers.  To date, neither FERC 
nor the California or New Hampshire authorities have adopted 
measures that would impair power purchase contracts and the 
Trust is not aware of any other such action by regulatory 
authorities in states where it does business.  

It must be remembered, however, that legislative and 
regulatory action is unpredictable and that at any time 
federal or state legislatures or regulators could adopt 
measures that would be materially adverse to the Trust's 
business.  Further, volatile market conditions could 
adversely affect the Trust's operations and the actions of 
other industry participants, such as electric utilities, 
that affect the Trust. 

  

PART II - OTHER INFORMATION
  
Item #4  Submission of Matters to a Vote of Security   Holders

The Trust conducted a solicitation of written consents from 
its Shareholders, beginning September 9, 1996, under 
Regulation 14A under the Securities and Exchange Act of 
1934, as amended.  The solicitation requested Shareholder 
approval for the Trust to terminate its election to be a 
business development company under the Investment Company 
Act of 1940, as amended.  

     (a)  The solicitation was made from September 9, 1996 
through the tabulation date, October 2, 1996.

     (c)  The sole matter voted upon through the consent 
solicitation was the proposal to terminate the business 
development company election (which included necessary 
amendments to the Declaration of Trust).  The results of the 
vote on the tabulation date were as follows:


Investor Shares (other 
than those held by the 
Managing Shareholder or 
its Affiliates) voted

Consenting to the Conversion Proposal
250.1130

Declining to consent to the Conversion Proposal
8.3162

Consents with questions as to form  and not tabulated as
consenting
67.0760


There were no abstentions or broker non-votes.

As of the record date, there were 481.16669 Investor Shares 
issued and outstanding, of which 1 share was held by the 
Managing Shareholder or its affiliates and which was 
ineligible to vote on amendments to the Declaration of 
Trust.  Accordingly, the holders of more than 50% of the 
outstanding Investor Shares eligible to vote on the 
amendment to the Declaration of Trust consented.  Further, 
the Managing Shareholder has voted the one Investor Share 
owned of record by it in favor of the proposal.  
Accordingly, the holders of more than 50% of all outstanding 
Investor Shares as of September 9, 1996 consented to the 
Conversion Proposal.  The entire proposal thus passed.

Item #6 Exhibits and Reports on Form 8-K  
  
        A. Exhibits  
  
           Exhibit 27. Financial Data Schedule
  
        B. Reports on Form 8-K  
  
           No reports have been filed on Form 8-K during this
quarter.
                                  
  

  
  

SIGNATURES  
  
  
     Pursuant to the requirements of the Securities Exchange 
Act of 1934, the registrant has duly cause this report to be 
signed on its behalf by the undersigned thereunto duly 
authorized.  
  
  
  
  
                           RIDGEWOOD ELECTRIC POWER TRUST IV 
                                   Registrant  
  
  
Date:     November 12, 1996     By /s/ Thomas R. Brown 
                                   Thomas R. Brown 
                                   Senior Vice President and
                                   Chief Financial Officer  
                                   (signing on behalf of the
                                   Registrant and as
                                   principal financial
                                   officer)