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, 1997    
    
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  

                    ITEM I - FINANCIAL STATEMENTS
    
<TABLE>  
                    RIDGEWOOD ELECTRIC POWER TRUST IV  
                       CONSOLIDATED BALANCE SHEETS  
                            (Unaudited)  
<CAPTION>  
  
                          September 30,      December 31,  
                              1997            1996  
<S>                   <C>              <C>  
  
Assets  
  
Cash and cash 
  equivalents          $ 12,220,265     $ 22,685,829  
Maintenance reserve 
  fund                          ---          394,070 
Accounts receivable, 
  trade                   1,125,017        1,065,181  
Other receivables            57,280          109,999  
Due from affiliates          71,189              ---  
Spare parts inventory       383,810          383,810  
Prepaid royalty  
  expense                       ---          144,535  
Prepaid other                22,343              ---  
Total current 
  assets                 13,879,904       24,783,424  
 
Investments: 
 
Investment in  
  hydroelectric  
  projects                6,454,555        6,806,511  
Investment in 
  biomass
  power projects          7,097,114                0
Electric power 
  equipment held 
  for resale                461,582          455,182  
Deferred due 
  diligence costs           515,061          245,828  
 
Plant and 
  equipment:             14,341,670       11,889,451  
Less-accumulated 
  depreciation             (717,390)        (357,109) 
 
Electric power 
  sales contract          8,266,096        8,266,096  
Less-accumulated 
  amortization             (803,648)        (390,343) 
 
Debt reserve fund           597,365          575,441  
 
Total assets           $ 50,092,309     $ 52,274,481  
  
Liabilities and 
 Shareholders' 
 Equity  
  
Current maturities 
  of long-term debt     $   538,191     $    538,191  
Accounts payable 
  and accrued 
  expenses                  407,947          569,106  
Due to affiliates           354,984           92,057  
  Total current 
    liabilities           1,301,122        1,199,354  
 
Long-term debt, 
  less current 
  portion                 5,037,916        5,440,260  
Minority interest in 
  the Providence 
  Project                 6,611,577        6,888,268  
 
Commitments and 
  contingencies                                        
 
Shareholders' equity  
  (476.8 shares 
  issued and out-
  standing at September 30,
  1997 and December 31,
  1996)                  36,448,660       38,829,963  
Retained earnings/ 
  (deficit)                 693,034          (83,364)  
  Total shareholders' 
    equity               37,141,694       38,746,599  
  
Total liabilities 
  and shareholders' 
  equity               $ 50,092,309     $ 52,274,481  
<FN>  
See Accompanying Notes to Financial Statements    
</TABLE>  
<PAGE>  
  
<TABLE>  
                   RIDGEWOOD ELECTRIC POWER TRUST IV  
                      STATEMENTS OF OPERATIONS  
                   FOR THE NINE MONTHS AND QUARTERS  
                ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996  
                            (Unaudited)  
<CAPTION>  
  


                                Nine months     Quarter      Nine months      Quarter
                                  ended         ended         ended          ended 
                                September 30,  September 30,  September 30,  September 30,
                                  1997          1997           1996           1996
                                                                                  

<S>                          <C>            <C>            <C>           <C>       
 
Net sales                      $ 4,850,561     $ 1,605,288   $ 2,429,141     $ 1,415,409
Sublease income                    276,750          92,250       169,125          92,250
  Total revenues                 5,127,311       1,697,538     2,598,266       1,507,659
 
Cost of sales                    3,434,865       1,066,018     1,853,278       1,126,544
 
Gross profit                     1,692,446         631,520       744,988         381,115
  
General and administrative 
  expenses                         286,784          50,000       151,215          98,653
Management fee                     874,720         296,076       480,551         339,641
Investment fee                         400             ---       626,561         105,630
Project due diligence costs         15,722             382        62,863          61,477
Other expenses                      25,041           9,083        18,246           3,717
  Total other 
   operating expenses            1,202,667         355,541     1,339,436         609,118
  
Income (loss) from 
  operations                       489,779         275,979      (594,448)       (228,003)
 
Other income (expense): 
  Interest and  
   dividend income                 755,734         204,809       825,102         314,623
  Interest expense                (436,794)       (135,600)     (274,150)       (148,511)
  Income from 
   hydroelectric 
   projects                        595,928        (177,771)          ---             ---
  Loss from wood-
   burning power
   projects                       (214,213)       (214,213)          ---             ---
    Net other income               700,655        (322,775)      550,952         166,112
   
Income (loss) before 
  minority interest              1,190,434         (46,796)      (43,496)        (61,891)
  
Minority interest in 
  the earnings of the 
  Providence Project              (414,063)       (185,678)     (180,633)        (59,268)
 
Net income (loss)              $   776,371     $  (232,474)  $  (224,129)    $  (121,159)




<FN>  
See Accompanying Notes to Financial Statements  
</TABLE>  
<PAGE>  
  
                 RIDGEWOOD ELECTRIC POWER TRUST IV  
                       STATEMENTS OF CASH FLOWS  
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND   
                             SEPTEMBER 30, 1996  
                              (Unaudited)  
                             
  
[CAPTION]  
  
                             Nine months          Nine months  
                            ended September 30,  ended September 30,  
                                 1997            1996  
[S]                          [C]                 [C]                
 
Cash flows from 
 operating activities: 
  Net income (loss)           $   776,371           $  (224,129) 
    
Adjustments to reconcile 
 net income (loss) to 
 net cash provided by 
 (used in) operating 
 activities: 
 
 Depreciation and 
  amortization                    773,586               550,000
 Amortization of 
  prepaid and accrued 
  royalties- net                  144,535                     -  
 Minority interest  
  in earnings of the 
  Providence Project              414,063               180,633  
 Income from 
  unconsolidated 
  hydroelectric 
  projects                       (595,928)                    -  
 Loss from 
  unconsolidated
  biomass
  projects                        214,213                     -
 Changes in assets 
  and liabilities, 
  net of effects of 
  Providence Project 
  purchase: 
   Decrease (increase) 
    in maintenance 
    reserve fund                  394,070              (384,587)     
   Decrease (increase) 
    in accounts receiv- 
    able, trade                   (59,836)           (1,116,498) 
   Decrease (increase) 
    in prepaid 
    royalties                           -              (370,412) 
   Decrease (increase) 
    other receivables              52,719              (270,336) 
   Decrease (increase) 
    in debt service 
    reserve fund                  (21,924)             (550,000) 
   Decrease (increase)
    in spare parts
    inventory                           -              (403,810)    
   Decrease (increase) 
    in due from
    affiliates                   (136,639)             (150,786)  
   Increase (decrease)
    in accounts payable
    and accrued expenses         (161,159)              500,279  
   Increase (decrease) 
    in due to 
    affiliates                    328,377                 2,400  
   Other-net                      (22,316)                    -  
   Total adjustments            1,323,761            (2,013,117) 
   Net cash provided 
    by (used in) 
    operating 
    activities                  2,100,132            (2,237,246) 
 
Cash used in 
 investing 
 activities: 
  Decrease (increase) in
   investment in 
   hydroelectric 
   projects                       947,844              (210,877) 
  Investment in
   biomass power
   projects                    (7,311,327)                    - 
  Purchase of Providence 
   Project capital
   assets                               -           (10,213,620) 
  Purchase of Providence
   Project contract
   rights                               -            (8,266,096) 
  Capital 
   expenditures                (2,452,219)             (455,087) 
  Deferred due 
   diligence costs               (269,233)               (7,606) 
  Purchase of electric 
   generating 
   equipment                       (6,400)              (13,837) 
    Net cash used 
    in investment 
    activities                 (9,091,295)          (19,167,123) 
 
Cash provided by 
 (used in) financing 
 activities: 
  Proceeds from 
   shareholders' 
   contributions                        -            31,374,961  
  Selling commissions 
   and offering 
   costs paid                           -            (4,636,468) 
  Cash distributions 
   to shareholders             (2,381,303)           (1,231,574) 
  Issuance of
   long-term debt                       -             6,310,404 
  Payments to reduce 
   long-term debt                (402,344)             (205,255) 
  Distribution to 
   minority interest             (690,754)            6,819,137  
    Net cash provided 
     by (used in) financing 
     activities                (3,474,401)           38,431,205  
 
Net increase (decrease) 
 in cash and cash 
 equivalents                  (10,465,564)           17,026,836  
Cash and cash 
 equivalents, 
 beginning of period           22,685,829            12,934,900  
Cash and cash 
 equivalents, 
 end of period                $12,220,265           $29,961,736  
 
[FN]  
See Accompanying Notes to Financial Statements  
<PAGE>  
  
Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements       


1.     Organization and Purpose

     Nature of Business
Ridgewood Electric Power Trust IV (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 discontinued its offering of shares in March 1995 and 
commenced operations in September 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 will include cogeneration facilities, which produce both 
electricity and heat energy and other power plants that use various fuel 
sources (except nuclear).  The power plants will sell electricity and/or heat 
energy to utilities and industrial users under long-term contracts.

     Business Development Company Election
The Trust made an election to be treated as a Business Development Company 
("BDC") under the Investment Company Act of 1940 ("the 1940 Act").  On January 
24, 1995, the Trust notified the Securities Exchange Commission of such 
election and registered its shares under the Securities Exchange Act of 1934 
("the 1934 Act").   On March 24, 1995, the election and registration became 
effective.

On September 9, 1996, through a proxy solicitation the Trust requested 
investor consent to end the BDC status.  As of October 2, 1996, more than 50% 
of the investors shares consented to the elimination of the BDC status.  
Accordingly, the Trust is no longer an investment company under the 1940 Act.

2.     Summary Of Significant Accounting Policies

     Interim financial statements
The consolidated financial statements for the periods ended September 30, 1997 
and 1996, included herein have been prepared by the Trust without audit 
pursuant to the rules and regulations of the Securities and Exchange 
Commission.  Accordingly, these statements reflect all adjustments (consisting 
only of normal recurring entries) which are, in the opinion of management, 
necessary for a fair statement of the financial results for the interim 
periods.  Certain information and notes normally included in financial 
statements prepared in accordance with generally accepted accounting 
principles have been condensed or omitted pursuant to such rules and 
regulations, although the Trust believes that the disclosures are adequate to 
make the information presented not misleading.  These financial statements 
should be read in conjunction with the financial statements and the notes 
thereto included in the Trust's Annual Report on Form 10-K for the year ended 
December 31, 1996 (Form 10-K).

     Accounting changes
As a BDC under the 1940 Act, the Trust utilized generally accepted accounting 
principles for investment companies.  As a result of the elimination of the 
BDC status, the Trust now utilizes generally accepted accounting principles 
for operating companies.  In accordance with the generally accepted accounting 
principles for BDCs, investments in power generation projects were stated at 
fair value in previously issued financial statements.  As a result of the 
elimination of the BDC status, consolidation and equity method accounting 
principles now apply to the 

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements         

accounting for investments.  Accordingly, the financial data for all prior 
periods presented has been restated to reflect the use of consolidation and 
equity method accounting principles.

     Principles of consolidation and accounting for investment in power 
generation projects
The consolidated financial statements include the accounts of the Trust and 
affiliates owned more than 50%.  All material intercompany transactions have 
been eliminated.

The Trust uses the equity method of accounting for its investment in an 
affiliate which is 50% owned because the Trust has the ability to exercise 
significant influence over the operating and financial policies of the 
affiliate but does not control the affiliate.  The Trust's share of the 
earnings of the affiliate is included in consolidated net income.

     Use of estimates
The preparation of consolidated financial statements in conformity with 
generally accepted accounting principles requires management to make estimates 
and assumptions that affect the reported amounts of assets and liabilities, 
and disclosure of contingent assets and liabilities at the date of the 
financial statements and the reported amounts of revenues and expenses during 
the reporting period.  Actual results could differ from the estimates.

     Cash and cash equivalents
The Trust considers all highly liquid investments with  maturities when 
purchased of three months or less as cash and cash equivalents.

     Plant and equipment
Plant and equipment, consisting principally of electrical generating 
equipment, is stated at cost.  Renewals and betterments that increase the 
useful lives of the assets are capitalized.  Repair and maintenance 
expenditures that increase the efficiency of the assets are expensed as 
incurred.

Depreciation is recorded using the straight-line method over the useful lives 
of the assets, which is 10 to 20 years.  For the period ended September 30, 
1997 and September 30, 1996, the Trust recorded depreciation expense of 
$360,282 and $550,000, respectively.

     Intangible asset
A portion of the purchase price of the Providence Project was assigned to the 
Electric Power Sales Contract and is being amortized over 15 years on a 
straight-line basis.  For the period ended September 30, 1997 and September 
30, 1996, the Trust recorded amortization expense of $413,304 and $0, 
respectively.

     Electric power equipment held for resale
The Trust owns certain used electric power equipment that is stated at cost, 
which approximates estimated net realizable value.

     Revenue recognition
Power generation revenue is recognized based on power delivered at rates 
stipulated in the power sales contract.  Interest and dividend income is 
recorded when earned.

     Income taxes
No provision is made for income taxes in the accompanying financial statements 
as the income or losses of the Trust are passed through and included in the 
tax returns of the individual shareholders of the Trusts.

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements       

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

     Due diligence costs relating to potential power projects
Costs relating to the due diligence performed on potential power project 
investments are initially deferred, until such time as the Trust determines 
whether or not it will make an investment in the respective project.  Costs 
relating to completed projects are capitalized and costs relating to rejected 
projects are expensed, at the time of rejection.

3.     Acquisitions

The Trust has made the following investments in power generation projects and 
electric power equipment:
                              
                          Nature of   Ownership     Sept. 30,     December 31,
     Project Name         Ownership    Interest        1997         1996
                                            
     Providence Project  Partnerships   64.3%      $12,850,000   $12,850,000
     Maine Hydro Project Partnerships   50.0%        6,454,555     6,806,511
     Indeck Maine        Limited Liability
      Biomass            Companies      50.0%        7,097,114           ---
      Project                     
     California          Direct 
      Pumping Project    Ownership     100.0%          811,948       697,730
     Electric Power      Direct 
      Equipment          Ownership     100.0%          461,582       455,182

Providence Project
In 1996, Ridgewood Providence Power Partners, L.P. was formed as a Delaware 
limited partnership ("Providence Power").  The Trust invested $12,721,500 and 
owns a 64.3% limited partnership interest in Providence Power.  In addition, 
Ridgewood Providence Power Corporation, was formed as a Delaware corporation 
("RPPCorp.").  The Trust invested $128,500 and owns 64.3% of the outstanding 
common stock of RPPCorp., which is the sole general partner of  Providence 
Power. 

On April 16, 1996, Providence Power purchased substantially all of the net 
assets of Northeastern Landfill Power Joint Venture.  The assets acquired 
include a 12.3 megawatt capacity electrical generating station, located at the 
Central Landfill in Johnston, Rhode Island (the "Providence Project").  The 
Providence Project includes eight reciprocating electric generator engines, 
which are fueled by methane gas produced and collected from the landfill.  The 
electricity generated is sold to New England Power Corporation under a long-
term contract.  The purchase price was $15,533,021 cash, including transaction 
costs and repayment of $3,000,000 of principal on the senior secured non-
recourse notes payable.  In addition, Providence Power assumed the obligation 
to repay the remaining principal outstanding of $6,310,404 on the senior 
secured non-recourse notes payable.

Through ownership in RPPCorp. and Providence Power, the Trust owns 64.3% of 
the Providence Project.  The remaining 35.7% is owned by Ridgewood Electric 
Power Trust III ("Trust III").  Ridgewood Power Corporation is the managing 
partner of the Trust and Trust III.

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements          

The acquisition of the Providence Project was accounted for as a purchase as 
of April 16, 1996, and the results of operations of the Providence Project 
have been included in the Trust's Consolidated Financial Statements since that 
date.  The purchase price was allocated to the net assets acquired, based on 
their respective fair values.  A portion of the purchase price ($8,266,096) 
was allocated to the Electric Power Sales Contract and is being amortized over 
15 years.

The following unaudited pro forma information has been prepared assuming the 
Providence Project was acquired as of the beginning of the periods presented.  
The pro forma information is presented for information purposes only and is 
not necessarily indicative of what would have occurred if the formation and 
acquisition had been made as of those dates.  In addition, the pro forma 
information is not intended to be a projection of future results and does not 
reflect capital equipment additions and changes in operating management which 
have been made at the Providence Project subsequent to the acquisition.

                                            Actual               ProForma
                                          For the nine          For the nine
                                          months ended          months ended
                                            Sept. 30,             Sept. 30,
                                               1997                  1996   

                    Net sales               $4,814,325            $3,841,108
                    Income from Operations   1,140,266               756,941
                    Net Income               1,160,416               539,472


     Maine Hydro Projects
On September 5, 1996, Ridgewood Maine Hydro Partners, L.P. was formed as a 
Delaware limited partnership ("Ridgewood Hydro L.P.").  The Trust made 
investments and advances of $6,740,570 and owns a 50% limited partnership 
interest in Ridgewood Hydro L.P.  In addition, Ridgewood Maine Hydro 
Corporation, was formed as a Delaware corporation ("RMHCorp.").  The Trust 
invested $65,941 and owns 50% of the outstanding common stock of RMHCorp., 
which is the sole general partner of Ridgewood Hydro L.P. 

On December 23, 1996, in a merger transaction, Ridgewood Hydro L.P. acquired 
14 hydroelectric projects, located in Maine (the "Maine Hydro Projects"), from 
a subsidiary of Consolidated Hydro, Inc.  The assets acquired include a total 
of 11.3 megawatts of electrical generating capacity.  The electricity 
generated is sold to Central Maine Power Company and Bangor Hydro Company 
under  long-term contracts.  The purchase price was $12,256,306 cash, 
including transaction costs.  In addition, Ridgewood Hydro L.P. assumed a 
long-term lease obligation of $1,017,209.  The Trust's 50% share of the cash 
consideration paid was $6,128,153. The remaining 50% was paid by Ridgewood 
Electric Power Trust V ("Trust V").  Ridgewood Power Corporation is the 
managing shareholder of the Trust and Trust V.

The Trust's 50% investment in the Maine Hydro Projects is accounted for under 
the equity method of accounting.  The Trust's equity in the earnings of the 
Maine Hydro Projects has been included in the Consolidated Financial 
Statements since December 23, 1996.

The Maine Hydro Projects are operated by a subsidiary of Consolidated Hydro, 
Inc., under an Operation, Maintenance and Administrative Agreement.  The 
annual operator's fee is $307,500, adjusted for inflation, plus an annual 
incentive fee equal to 50% of the net cash flow in excess of

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements  

a target amount.  The agreement has a five year term and can be renewed for 
two additional five year terms by mutual consent.

Summarized financial information for the Maine Hydro Projects is as follows:

Balance Sheet Information at September 30, 1997

Current assets               $  1,196,042   Due to Trust IV        $   43,027
Electric power sales contract  11,910,208   Other current liabilities  326,894
Other non-current assets          853,823   Non-current liabilities  1,004,679
                                            Partners' equity        12,585,473
Total assets                  $13,960,073   Total liabilities 
                                             and equity            $13,960,073


Statement of Operations Information for the Nine Months Ended September 30, 
1997

Revenue                    $3,415,684
Operating expenses            1,358,910
Depreciation & Amortization          780,123
Other Income/(Expense)               (84,796)
          Net income               $1,191,855

10.     Indeck Maine Biomass Projects

On July 1, 1997, through a subsidiary, the Trust purchased a preferred 
membership interest in Indeck Maine Energy, L.L.C. ("Indeck Maine"), which 
owns two electric power generating stations fueled by waste wood.  The 
aggregate purchase price was $7,275,450 and includes transaction costs of 
$275,450.  Each project has 24.5 megawatts of electrical generating capacity.  
The Penobscot project is located in West Enfield, Maine and the Eastport 
project is located in Jonesboro, Maine.  Indeck Maine had a power sales 
contract with the New England Power Pool, which expired on August 31, 1997.  
The facilities were shut down in September and were reactivated in November 
1997.  The facilities are currently selling capacity and energy to Bangor 
Hydro-Electric Company, a local utility ("BHC") on a month-to-month basis.

The preferred membership interest entitles the Trust to receive an 18% 
cumulative annual return on its $7,000,000 capital contribution to Indeck 
Maine from the operating net cash flow from the projects.  Trust V also 
purchased an identical preferred membership interest in Indeck Maine.  After 
payments in full to the preferred membership interests, any remaining 
operating net cash flow is payable 25% to the Trust and Trust V and 75% to the 
other Indeck Maine members.

The Trust's investment in Indeck Maine is accounted for under the equity 
method of accounting.  The Trust's equity in the loss of Indeck Maine for the 
period July 1, 1997 to September 30, 1997 was $214,213.

The Penobscot and Eastport projects are operated by Indeck Operations, Inc., 
an affiliate of the other members of Indeck Maine.  The annual operator's fee 
is $300,000.

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements         

Summarized financial information for the Indeck Maine Biomass projects is as 
follows:

     Balance Sheet Information at September 30, 1997

     Current assets   $  1,506,965   Current liabilities        $     631,354
Non-current assets       3,553,978   Non-current liabilities            - 0 -
                                     Members' equity                4,429,589
Total assets          $  5,060,943   Total liabilities
                                      and equity                 $  5,060,943


Statement of Operations Information for the Period July 1, 1997 to September 
30, 1997

Revenue                       $2,046,803
Operating expenses             2,420,305
Depreciation & Amortization       54,924
                             $  (428,426)


     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 to the operator at a discount from the equivalent kilowatt hours of 
electricity.  The Trust receives a distribution of $0.02 per equivalent 
kilowatt hour up to 3,000 kilowatt-hours per year and $0.01 per equivalent 
kilowatt-hour for each additional kilowatt-hour per year. The operator pays 
for fuel, maintenance, repair and replacement. The initial acquisition 
included 11 engines with a rated capacity of 1.2 megawatts.  The purchase 
price of $353,619 was paid in 1996.  During 1996, the Trust acquired an 
additional 9 engines with a rated capacity of 1.2 megawatts at a purchase 
price of $344,111.  During the nine months ended September 30, 1997 the Trust 
invested additional funds of $114,218 in the California Pumping project.  At 
September 30, 1997, the Trust's total investment in the California Pumping 
project was $811,948.

4.     Electric Power Equipment Held for Resale

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.  At September 30, 1997 and December 31, 1996, the cost of such 
equipment was $461,582 and $455,182, respectively.

5.  Long-term Debt

Following is a summary of long-term debt at September 30, 1997:

Senior secured non-recourse notes payable    $5,576,107
Less - current maturity                        (538,191)
Total long-term debt                         $5,037,916

The senior secured non-recourse notes are obligations of Providence Power and 
are due in monthly installments of $90,738 including interest at 9.6%.  Final 
payment is due on October 15, 2004.  The notes also provide for additional 
interest equal to 5% of the annual net cash flow of 

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements                              

the Providence Project, as defined.  No additional interest was due for the 
nine months ending September 30, 1997 and the eight and one-half months ending 
December 31, 1996.  The notes are secured by a leasehold mortgage on 
Providence Power's landfill lease agreements and substantially all of the 
assets of Providence Power.  In addition to the required monthly payments, 
mandatory prepayments may be required if certain events occur.  The loan 
agreement also provides for a cash funded debt service reserve and maintenance 
reserve.  At September 30, 1997 and December 31, 1996, the cash balance in 
these reserve accounts were $597,365 and $969,511, respectively.  Additions 
and reductions to these reserve accounts are defined in the loan agreement.  
As of January 31, 1997, Providence Power's obligations to maintain a cash 
balance in the maintenance reserve account have terminated and the cash 
balance in the reserve account has been released to Providence Power.  The 
loan agreement contains various covenants, including the maintenance of a 
specified debt service ratio.

Scheduled repayments of long-term debt principal for the next five years are 
as follows:

 Year Ended
December 31,          Repayment
       1997          $538,191
       1998            592,193
       1999            651,613
       2000            716,995
       2001            788,937

6.     Fair Value of Financial Instruments
At September 30, 1997, the carrying value of the Trust's cash, debt service 
and maintenance reserves and notes payable approximates their fair value.  The 
fair value of the long-term debt, calculated using current rates for loans 
with similar maturities, also approximates its carrying value.

7.     Electric Power Sales Contracts

Providence Power is committed to sell all of the electricity it produces to 
New England Power Company ("NEP") for prices as specified in the Power 
Purchase Agreement.  The prices are adjusted annually for changes in the 
Consumer Price Index, as defined.  The NEP agreement expires in the year 2020 
and can be terminated by either party under certain conditions in 2010.  At 
the time of the acquisition of the Providence Project, Providence Power was 
required under the NEP agreement to maintain in an escrow account cash to 
secure payment of the aggregate differential to NEP in the event of default.  
At April 16, 1996, the aggregate differential amounted to $1,065,989.  In 
October 1996, the aggregate differential decreased to zero and the cash held 
in escrow was released to Providence Power.  For the nine months ended 
September 30, 1997 and September 30, 1996, sales revenue under the NEP Power 
Purchase Agreement amounted to $4,814,325 and $2,417,188, respectively.

The Maine Hydro Projects qualify as small power production facilities under 
the Public Utility Regulatory Policies Act ("PURPA").  PURPA requires that 
each electric utility company, operating at the location of a small power 
production facility, as defined, purchase the electricity generated by such 
facility at a specified or negotiated price.  The Maine Hydro Projects sell 
substantially all of their electrical output to two public utility companies, 
Central Maine Power Company ("CMP") and BHC, under long-term power purchase 
agreements.  Eleven of  the  twelve  power  purchase agreements  with  CMP  
expire  in December 2008 and are renewable for an additional five year period.  
The twelfth power purchase agreement with CMP expires in 

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements                              

December 2007 with CMP having the option to extend the contract three more 
five-year periods.  The two power purchase agreements with BHC expire December 
2014 and February 2017.

The Indeck Maine projects do not have long-term contracts and attempt to sell 
their capacity and output on a short-term basis in the competitive supply 
market.

8.     Landfill Lease and Sublease 

Providence Power leases the Central Landfill, located in Johnston, Rhode 
Island from Rhode Island Resource Recovery Corporation ("RIRRC").  The lease 
expires in 2020 and can be extended for an additional 10 years.  The lease 
requires Providence Power to pay a royalty equal to 15% of net revenues, as 
defined, for the first 15 years of the lease.  For subsequent years, the 
royalty is 15% of net revenues for each month in which the average daily 
kilowatt-hour production is less than 180,000 and 18% of net revenues for each 
month in which the average daily kilowatt-hour production exceeds 180,000.  At 
the time of the acquisition of the Providence Project, Providence Power made a 
royalty prepayment to RIRRC of $925,000.  For the nine months ended September 
30, 1997 and September 30, 1996, royalty expense relating to the RIRRC lease 
amounted to $707,470 and $362,578, respectively.

Providence Power subleases the Central Landfill to Central Gas Limited 
Partnership ("Gasco"). Gasco operates and maintains the landfill gas 
collection system and supplies landfill gas to the Providence Project.  The 
sublease agreement is effective through December 31, 2010 and provides for the 
following:

1.     Sublease Income - Gasco is to pay Providence Power an annual amount 
equal to the product of $30,000 times the assumed output capacity of each 
engine generator set in megawatts installed and operating by the joint 
venture.  Income recorded under the sublease amounted to $276,750 and 
$169,125, respectively for the nine months ended September 30, 1997 and 
September 30, 1996.

2.     Fuel Expense - Providence Power agreed to purchase all the landfill gas 
produced by Gasco and pay on a monthly basis $.01183 per kilowatt hour for the 
first 4,000,000 kilowatt hours, $.005 per kilowatt hour for kilowatt hours in 
excess of 4,000,000 and $.05 per million BTU's of excess landfill gas.  The 
price is adjusted annually for changes in the Consumer Price Index, as 
defined.  Purchases from Gasco for the nine months ended September 30, 1997 
and September 30, 1996 amounted to $643,276 and $347,654, respectively.

     Transactions With Managing Shareholder and Affiliates

The Trust pays to the managing shareholder a distribution and offering fee up 
to 6% of each capital contribution made to the Trust.  This fee is intended to 
cover legal, accounting, consulting, filing, printing, distribution, selling 
and closing costs for the offering of  the Trust.  For the nine months ended 
September 30, 1997 and September 30, 1996, the Trust paid fees for these 
services to the managing shareholder of $0 and $4,636,468, respectively.  
These fees are recorded as a reduction in the shareholders' capital 
contribution.

The Trust pays to the managing shareholder an investment fee up to 2% of each 
capital contribution made to the Trust.  The fee is payable to the managing 
shareholder for its services in investigating and evaluating investment 
opportunities and effecting transactions for investing the 

<PAGE>

Ridgewood Electric Power Trust IV
Notes to the Consolidated Financial Statements                              

capital of the Trust. For the periods ended September 30, 1997 and September 
30, 1996, the Trust paid investment fees to the managing shareholder of $400 
and $626,561, respectively.

The Trust entered into a management agreement with the managing shareholder 
under which the managing shareholder renders certain management, 
administrative and advisory services and provides office space and other 
facilities to the Trust. As compensation to the managing shareholder, the 
Trust pays the managing shareholder an annual management fee equal to 3% of 
the net asset value of the Trust payable monthly upon the closing of the 
Trust.  For the nine months ended September 30, 1997 and September 30, 1996, 
the Trust paid management fees to the managing shareholder of $874,720 and 
$480,551, respectively.
     
Under the Declaration of Trust, the managing shareholder is entitled to 
receive each year 1% of all distributions made by the Trust (other than those 
derived from the disposition of Trust property) until the shareholders have 
been distributed each year an amount equal to 14% of their equity 
contribution.  Thereafter, the managing shareholder is entitled to receive 20% 
of the distributions for the remainder of the year.  The managing shareholder 
is entitled to receive 1% of the proceeds from dispositions of Trust 
properties until the shareholders have received cumulative distributions equal 
to their original investment ("Payout").  In all cases, after Payout the 
managing shareholder is entitled to receive 20% of all remaining distributions 
of the Trust.

Where permitted, in the event the managing shareholder or an affiliate 
performs brokering services in respect of an investment acquisition or 
disposition opportunity for the Trust, the managing shareholder or such 
affiliate may charge the Trust a brokerage fee.  Such fee may not exceed 2% of 
the gross proceeds of any such acquisition or disposition.  No such fees have 
been paid through September 30, 1997.

The managing shareholder purchased one share of the Trust for $83,000.  For 
the nine months ended September 30, 1997 and September 30, 1996, commissions 
and placement fees of $200 and $357,643, respectively, were earned by 
Ridgewood Securities Corporation, an affiliate of the managing shareholder.

Under an Operating Agreement with the Trust, Ridgewood Power Management 
Corporation ("Ridgewood Management"), an entity related to the managing 
shareholder through common ownership, provides management, purchasing, 
engineering, planning and administrative services to the Trust's power 
generation projects.  Ridgewood Management charges the projects at its cost 
for these services and for the allocable amount of certain overhead items.  
Allocations of costs are on the basis of identifiable direct costs, time 
records or in proportion to amount invested in projects managed by Ridgewood 
Management.  For the nine months ended September 30, 1997 and September 30, 
1996, Ridgewood Management charged Providence Power $340,222 and $56,676, 
respectively, for overhead items allocated in proportion to the amount 
invested in projects managed, and charged Providence Power for all of the 
remaining direct operating and non-operating expenses incurred during the 
period.

                   ITEM II - MANAGEMENT'S DISCUSSION AND  
                    ANALYSIS OF FINANCIAL CONDITION AND  
                           RESULTS OF OPERATIONS  
  
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 forward-looking 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.

Dollar amounts in this discussion are generally rounded to the nearest $1,000.

Nine months ended September 30, 1997 versus nine months ended September 30, 
1996

Results of operations

The consolidated financial statements include the accounts of the Trust and 
the limited partnerships owning the Providence and California Pumping 
Projects.  The Trust uses the equity method of accounting for its investments 
in the Maine Hydro Projects and the Indeck Maine Biomass Projects, each of 
which are owned 50% by the Trust.  The Trust's share of the earnings 
and cash flow earned by the Maine Hydro Projects is seasonal, peaking in the 
second and fourth quarters of the year (when high river flows generally 
produce a greater amount of electricity) and falling in the first and third 
quarters, when river flows are lower and equipment maintenance is performed.  
The Indeck Maine Biomass Projects sell their capacity and output short-term in 
the developing competitive market, either in bilateral transactions with 
utilities or through the newly-created New England ISO auction process.  
Accordingly, there is no assurance these projects will operate full time and 
their cash flow is volatile.
  
For the nine months ended September 30, 1997, the Trust's net income increased 
to $776,000 from a net loss of $224,000 for the same period in 1996.  The 
earnings for the nine months ended September 30, 1997, includes equity in net 
income from the Maine Hydro Projects of $596,000, equity in the net loss of 
the Indeck Maine Biomass Projects of $214,000, earnings, net of minority 
interest, from the Providence Project of $743,000, a minor contribution to 
earnings from the California Pumping Project of $36,000, interest and dividend 
income at the Trust level of $575,000, less Trust-level expenses of $960,000.
  
The Trust's only investments in the first nine months of 1996 were the 
Providence Project and the California Pumping Project and the Trust had 
significant investment fee expenses relating to the share offering. The loss 
for the nine months ended September 30, 1996, includes earnings, net of 
minority interest, from the Providence Project of $325,000, a minor 
contribution to earnings from the California Pumping Project of $12,000, 
interest and dividend income at the Trust level of $600,000, less Trust-level 
expenses of $1,161,000.  The Trust-level expenses include investment fees, 
management fees and general, and administrative and other expenses of 
$627,000, $481,000 and $53,000, respectively.  
  
Liquidity and Capital Resources    

At September 30, 1997, the Trust had $12,220,000 of cash available for 
investment in Projects.  During the first nine months of 1997, cash flow 
provided by operation activities amounted to $2,100,000.  Distributions to 
shareholders of the Trust amounted to $2,381,000. 

During the first nine months of 1997, capital expenditures amounted to 
$2,452,000, most of which related to the installation of a ninth generator 
engine at the Providence Project.    

During the third quarter of 1997, the Trust and its principal bank 
executed a commitment letter for a revolving line of credit, whereby the bank 
will provide a three year committed line of credit facility of $1,150,000.  
Outstanding borrowings bear interest at the bank's prime rate or, at the 
Trust's choice, at LIBOR plus 2.5%.  The credit agreement will require the 
Trust to maintain a ratio of total debt to tangible net worth of no more than 
1 to 1 and a minimum debt service coverage ratio of 2 to 1.  The credit 
facility is being obtained in order to allow the Trust to operate using a 
minimum amount of cash, maximize the amount invested in Projects and maximize 
cash distributions to shareholders.  The Trust expects to execute the 
definitive credit agreement during the fourth quarter of 1997.

The Trust's policy is to distribute as much cash as is prudent to 
shareholders.  Accordingly, the Trust has not found it necessary to retain a 
material amount of working capital.  The amount of working capital retained 
will be further reduced by obtaining a line of credit.  

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 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 other states where it does business.  

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, which in turn could 
affect the Trust. 
    
  
                  PART II - OTHER INFORMATION  
    
Item #6 Exhibits and Reports on Form 8-K    
    
        A. Exhibits    
    
           Exhibit 27. Financial Data Schedule  
    
        B. Reports on Form 8-K.

           The Trust filed a Current Report on Form 8-K to report the 
acquisition of an interest in the Indeck Maine Biomass Projects, dated July 1, 
1997.
  
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 IV   
                                   Registrant    
    
    
Date:  November 14, 1997      By /s/ Martin V. Quinn   
                                Martin V. Quinn  
                                   Senior Vice President and   
                                   Chief Financial Officer    
                                   (signing on behalf of the  
                                   Registrant and as  
                                   principal financial  
                                   officer)