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, 2007


or




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




(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 o  No 
x





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





Large
accelerated filer     o         Accelerated
filer      o         Non-accelerated
filer     x





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).  Yes   o     No   
x





As of
December 31, 2007, 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
            
            11Item 1A.
            Risk Factors
            
            11Item 2.
            Unregistered Sales of Equity Securities and Use of
      Proceeds
            
            11Item 3.
            Defaults Upon Senior Securities
            
            11Item 4.
            Submission of Matters to a Vote of Security
      Holders
            
            11Item 5.
            Other Information
            
            11Item 6.
            Exhibits
            
            11SIGNATURES
            
            
            12








Table of Contents





PART
I.   FINANCIAL INFORMATION





ITEM 1.   FINANCIAL STATEMENTS





RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED BALANCE SHEETS(in
      thousands, except share data)June
      30,
              
              
              December
      31,2007
              
              
              2006ASSETS
              
              (unaudited)Current
      assets:Cash
              
              $
              158
              
              
              $
              819Accounts
      receivable
              
              
              3,897
              
              
              
              2,252Due
      from affiliates
              
              
              95
              
              
              
              59Prepaid
      expenses and other current assets
              
              
              121
              
              
              
              80Total
      current assets
              
              
              4,271
              
              
              
              3,210Notes
      receivable, affiliates
              
              
              5,061
              
              
              
              4,859Investments
              
              
              5,421
              
              
              
              4,776Plant
      and equipment, net
              
              
              8,192
              
              
              
              8,561Intangibles,
      net
              
              
              1,556
              
              
              
              1,857Other
      assets
              
              
              430
              
              
              
              405Total assets
              
              $
              24,931
              
              
              $
              23,668LIABILITIES
      AND SHAREHOLDERS’ EQUITYCurrent
      liabilities:Accounts
      payable
              
              $
              210
              
              
              $
              432Accrued
      royalty expense
              
              
              562
              
              
              
              451Due
      to affiliates
              
              
              1,279
              
              
              
              285Total current liabilities
              
              
              2,051
              
              
              
              1,168Minority
      interest
              
              
              4,653
              
              
              
              4,566Total  liabilities
              
              
              6,704
              
              
              
              5,734Commitments
      and contingenciesShareholders’
      equity (deficit):Shareholders’
      equity (476.8875 Investor Shares
                issued
      and outstanding)
              
              
              18,314
              
              
              
              18,024Managing
      Shareholder’s accumulated deficit
                (1
      management share issued and outstanding)
              
              
              (87
              )
              
              
              (90
              )Total shareholders’ equity
              
              
              18,227
              
              
              
              17,934Total liabilities and shareholders’
      equity
              
              $
              24,931
              
              
              $
              23,668
    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 30,2007
                
                
                2006
                
                
                2007
                
                
                2006Power
      generation revenue
                
                $
                3,803
                
                
                $
                3,763
                
                
                $
                1,919
                
                
                $
                1,884Renewable
      attribute revenue
                
                
                2,572
                
                
                
                1,947
                
                
                
                1,300
                
                
                
                958Sublease
      revenue
                
                
                292
                
                
                
                288
                
                
                
                146
                
                
                
                144Total revenues
                
                
                6,667
                
                
                
                5,998
                
                
                
                3,365
                
                
                
                2,986Cost
      of revenues
                
                
                4,996
                
                
                
                4,501
                
                
                
                2,597
                
                
                
                2,337Gross
      profit
                
                
                1,671
                
                
                
                1,497
                
                
                
                768
                
                
                
                649Operating
      expenses:General
      and administrative expenses
                
                
                370
                
                
                
                112
                
                
                
                251
                
                
                
                45Management
      fee to the Managing Shareholder
                
                
                268
                
                
                
                268
                
                
                
                134
                
                
                
                134Total
      operating expenses
                
                
                638
                
                
                
                380
                
                
                
                385
                
                
                
                179Income
      from operations
                
                
                1,033
                
                
                
                1,117
                
                
                
                383
                
                
                
                470Other
      income (expense):Interest
      income, affiliates
                
                
                213
                
                
                
                218
                
                
                
                106
                
                
                
                106Interest
      expense
                
                
                -
                
                
                
                (26
                )
                
                
                -
                
                
                
                (14
                )Equity
      in income of Maine Hydro
                
                
                548
                
                
                
                755
                
                
                
                320
                
                
                
                379Equity
      in income (loss) of Indeck Maine
                
                
                448
                
                
                
                (191
                )
                
                
                261
                
                
                
                (321
                )Other
      income
                
                
                11
                
                
                
                -
                
                
                
                11
                
                
                
                -Total other income, net
                
                
                1,220
                
                
                
                756
                
                
                
                698
                
                
                
                150Income
      before minority interest
                
                
                2,253
                
                
                
                1,873
                
                
                
                1,081
                
                
                
                620Minority
      interest in the earnings of subsidiaries
                
                
                (515
                )
                
                
                (532
                )
                
                
                (210
                )
                
                
                (227
                )Net
      income
                
                $
                1,738
                
                
                $
                1,341
                
                
                $
                871
                
                
                $
                393Managing
      Shareholder – Net income
                
                $
                17
                
                
                $
                13
                
                
                $
                8
                
                
                $
                4Shareholders
      – Net income
                
                
                1,721
                
                
                
                1,328
                
                
                
                863
                
                
                
                389Net
      income per Investor Share
                
                
                3,608
                
                
                
                2,784
                
                
                
                1,809
                
                
                
                816Distributions
      per Investor Share
                
                
                3,000
                
                
                
                3,000
                
                
                
                1,000
                
                
                
                1,500





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 30,2007
              
              
              2006Cash
      flows from operating activities:Net cash provided by operating
activities
              
              $
              1,241
              
              
              $
              2,093Cash
      flows from investing activities:Proceeds
      from notes receivable, affiliates
              
              
              -
              
              
              
              207Capital
      expenditures
              
              
              (29
              )
              
              
              -Net
      cash (used in) provided by investing activities
              
              
              (29
              )
              
              
              207Cash
      flows from financing activities:Cash
      distribution to minority interest
              
              
              (428
              )
              
              
              (178
              )Cash
      distribution to shareholders
              
              
              (1,445
              )
              
              
              (1,446
              )Net
      cash used in financing activities
              
              
              (1,873
              )
              
              
              (1,624
              )Net
      (decrease) increase in cash
              
              
              (661
              )
              
              
              676Cash,
      beginning of period
              
              
              819
              
              
              
              639Cash,
      end of period
              
              $
              158
              
              
              $
              1,315





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, 2006 filed with the SEC on December 14, 2007 (the “2006 Form
10-K”). No significant changes have been made to the Trust’s accounting policies
and estimates disclosed in its 2006 Form 10-K.





In the
opinion of management, the condensed consolidated financial statements as of
June 30, 2007, and for the six and three month periods ended June 30, 2007 and
2006, 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 month periods ended June 30, 2007 and 2006 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 on
February 6, 1995 and concluded its offering on September 30, 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 and other infrastructure projects in the US. The projects owned by
the Trust have characteristics that qualify the projects for government
incentives. Among the incentives are ancillary revenue opportunities related to
the fuel used by the power plants.





The
Trust’s accompanying condensed consolidated financial statements include the
financial statements of 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 balance sheets and statements of operations.





In January 2008, the Managing
Shareholder announced that it intends to market Maine Hydro and Indeck Maine for
sale.





3.  
RECENT ACCOUNTING PRONOUNCEMENTS




FIN
48





In June
2006, the Financial Accounting Standards Board (“FASB”) issued FASB
Interpretation No. 48, Accounting for Uncertainty in Income
Taxes (“FIN 48”) an interpretation of FASB Statement of Financial
Accounting Standards (“SFAS”) No. 109, Accounting for Income Taxes(“SFAS 109”). FIN 48 clarifies the accounting for uncertainty in income
taxes recognized in an enterprise’s financial statements in accordance with SFAS
109 and prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 became effective for the Trust
January 1, 2007. The Trust adopted FIN 48 effective January 1, 2007 with no
impact 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
157




In
September 2006, the FASB issued 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. SFAS 157 will be effective for the Trust beginning
January 1, 2008. The Trust is currently evaluating the impact of adopting SFAS
157 on its condensed consolidated financial statements.





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. SFAS 159 will be effective for the Trust beginning January 1,
2008. The Trust is currently evaluating the impact of adopting SFAS 159 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.





4.    
   INVESTMENTS





Maine
Hydro





Summarized
statements of operations data for Maine Hydro for the six and three months ended
June 30, 2007 and 2006 is as follows:





Six
      Months Ended June 30,
            
            
            Three
      Months Ended June 30,2007
            
            
            2006
            
            
            2007
            
            
            2006Revenues
            
            $
            2,764
            
            
            $
            3,031
            
            
            $
            1,521
            
            
            $
            1,511Gross
      profit
            
            
            1,344
            
            
            
            1,583
            
            
            
            762
            
            
            
            787Income
      from operations
            
            
            1,096
            
            
            
            1,545
            
            
            
            640
            
            
            
            778Net
      income
            
            $
            1,096
            
            
            $
            1,511
            
            
            $
            640
            
            
            $
            759Trust
      share of income in Maine Hydro
            
            $
            548
            
            
            $
            755
            
            
            $
            320
            
            
            $
            379




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 months and three
months ended June 30, 2007 and 2006 is as follows:





Six
      Months Ended June 30,
            
            
            Three
      Months Ended June 30,2007
            
            
            2006
            
            
            2007
            
            
            2006Revenues
            
            $
            18,329
            
            
            $
            15,685
            
            
            $
            9,194
            
            
            $
            7,339Gross
      profit (loss)
            
            
            2,172
            
            
            
            764
            
            
            
            1,129
            
            
            
            (78)Income
      (loss) from operations
            
            
            1,909
            
            
            
            641
            
            
            
            1,013
            
            
            
            (148)Net
      income (loss)
            
            $
            1,185
            
            
            $
            (102
            )
            
            $
            654
            
            
            $
            (514)Trust
      share of  income (loss) in Indeck Maine
            
            $
            448
            
            
            $
            (191
            )
            
            $
            261
            
            
            $
            (321)





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 $145 and $140
for the six months ended June 30, 2007 and 2006, respectively, and depreciation
expense of $67 and $64 for the three months ended June 30, 2007 and 2006,
respectively, is included in the equity income (loss) from Indeck Maine in the
condensed consolidated statements of operations.





5.    
   COMMITMENTS AND CONTINGENCIES





Ridgewood
Providence and several of its affiliates have an agreement with a power marketer
for which they are committed to sell a portion of their renewable portfolio
standard 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, as defined.
If Ridgewood Providence and its affiliates fail to supply the required number of
RPS Attributes, penalties may be imposed. In accordance with the terms of the
agreement, if the power marketer elects to exercise an annual option and
Ridgewood Providence and its affiliates produce no renewable attributes for such
option year, Ridgewood Providence and its affiliates face a maximum penalty,
which is adjusted annually for the change in the consumer price index, among
other things, of approximately $3,800
measured using current factors, for that option year and any other year in which
an option has been exercised and no renewable attributes have been produced.
Pursuant to the agreement, Ridgewood Providence and Indeck Maine are liable for
8% and 70% of the total penalty, respectively, but each may be liable up to 100%
in the event of the default of its affiliates. In the fourth quarters of 2007
and 2006, the power marketer notified Ridgewood Providence and its affiliates
that it has elected to purchase the output for 2008 and 2007, respectively, as
specified in the agreement.  As of June 30, 2007 and 2006, Ridgewood
Providence satisfied and delivered RPS Attributes as prescribed in the
agreements and therefore no penalties were incurred.





On August
16, 2006, the Managing Shareholder and affiliates of the Trust filed lawsuits
against the former independent registered public accounting firm for the Trust,
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 by Perelson Weiner. On October 20,
2006, Perelson Weiner filed a counterclaim against the Trust and its affiliates
alleging breach of contract due to unpaid invoices. 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.


6
 Table of Contents




RIDGEWOOD
ELECTRIC POWER TRUST IV


NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(unaudited,
dollar amounts in thousands)








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 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, 2007 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 month periods ended June 30, 2007 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 2006 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 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 2006 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 2006 Form
10-K.





Results
of Operations and Changes in Financial Condition





Six
months ended June 30, 2007 compared to the six months ended June 30,
2006





Revenues increased by $0.7 million, or 11.2%, from $6 million in the first
six months of 2006 to $6.7 million for the same period in 2007. The increase was
primarily due to higher renewable attribute revenue resulting from higher prices
in the Connecticut market in the first half of 2007 as compared to the first
half of 2006.





Cost of
revenues increased by $0.5 million, or 11%, from $4.5 million in the first six
months of 2006 to $5 million for the same period in 2007. This increase in the
first six months of 2007 was primarily attributable to $0.3 million higher
royalty expense driven by increased renewable attribute revenues and $0.2
million higher spare parts expense.





Gross
profit increased by $0.2 million, or 11.6%, from $1.5 million in the first six
months of 2006 to $1.7 million for the same period in 2007 primarily due to
increased revenues partially offset by increased cost of revenues.




General
and administrative expenses increased by $0.3 million from $0.1 million for the
six months ended June 30, 2006 to $0.4 million for the same period in
2007. The increase was primarily attributable to higher professional
fees.





For the
first half of 2007, the Trust recorded equity income of $0.5 million from its
investment in Maine Hydro compared to equity income of $0.8 million for the same
period in 2006. The decrease of approximately $0.3 million was primarily related
to decreased energy revenues resulting from lower production in the first
half of 2007 as compared to the first half of 2006.


8
 Table of Contents




For the
first half of 2007, the Trust recorded equity income of $0.4 million from
its investment in Indeck Maine compared to equity loss of $0.2 million for the
same period in 2006. The increase in equity income of $0.6 million during
the first six months of 2007 was primarily due to increased gross profit
resulting from higher production and electricity prices as compared to the first
six months of 2006.





Total
assets at June 30, 2007 were $24.9 million, an increase of approximately $1.2
million from the December 31, 2006 balance of $23.7 million.  This
increase was primarily due to increases of $1.6 million in accounts receivable,
$0.6 million in investments and $0.2 million in notes receivable, partially
offset by decreases of $0.6 million in cash, $0.3 million in plant and equipment
and $0.3 million in intangibles.  Total liabilities increased by $1
million from $5.7 million at December 31, 2006 to $6.7 million at June 30, 2007,
primarily due to an increase in due to affiliates needed by the Trust to offset
the increase in accounts receivable.





Three
months ended June 30, 2007 compared to the three months ended June 30,
2006





Revenues
increased by $0.4 million, or 12.7%, from $3 million in the second quarter of
2006 to $3.4 million for the same period in 2007. The increase was primarily due
to higher renewable attribute revenue resulting from higher prices in the
Connecticut market in the second quarter of 2007 as compared to the second
quarter of 2006.





Cost of
revenues increased by $0.3 million, or 11.1%, from $2.3 million in the second
quarter of 2006 to $2.6 million for the same period in 2007. This increase in
the second quarter of 2007 was primarily attributable to $0.2 million higher
royalty expense driven by increased renewable attribute revenues and $0.1
million higher spare parts expense.





Gross
profit increased by approximately $0.2 million, or 18.3%, from $0.6 million in
the second quarter of 2006 to $0.8 million for the same period in 2007 primarily
due to increased revenues partially offset by increased cost of
revenues.





In the
second quarter of 2007, the Trust recorded equity income of $0.3 million
from its investment in Indeck Maine compared to equity loss of  $0.3
million for the same period in 2006. The increase in equity income of $0.6
million in the second quarter of 2007 was primarily due to increased gross
profits resulting from higher production and electricity prices as compared to
the second quarter of 2006.





Liquidity
and Capital Resources





Six
months ended June 30, 2007 compared to the six months ended June 30,
2006





At June
30, 2007, the Trust had cash of $0.2 million, a decrease of approximately
$0.6 million from $0.8 million at December 31, 2006. The cash flows for the six
months ended June 30, 2007 were $1.3 million provided by operating activities
offset by $29,000 used in investing activities and $1.9 million used in
financing activities.





Cash
provided by operating activities for the six months ended June 30, 2007 was $1.3
million compared to $2.1 million for the same period in 2006. The decrease of
approximately $0.8 million in cash flow in the first half of 2007 was primarily
due to increases in accounts receivable partially offset by increased net due
to/from affiliates.





Cash used
in investing activities for the six months ended June 30, 2007 was $29,000
compared to cash provided of $0.2 million for the same period in 2006. The cash
used in the first half of 2007 represents $29,000 of capital expenditures and
the cash provided for the same period in 2006 represents proceeds of $0.2
million from the loan to Ridgewood Power B Fund/Providence
Expansion.





Cash used
in financing activities for the first half of 2007 was $1.9 million compared to
$1.6 million for the same period in 2006. In the first half of 2007, cash
used in financing activities included $1.5 million and $0.4 million in cash
distributions to shareholders and minority interest, respectively. For the first
six months of 2006, financing activities included $1.4 million and $0.2 million
in cash distributions to shareholders and minority interest,
respectively.





Future
Liquidity and Capital Resource Requirements




The Trust
expects cash flows from operating activities, along with existing cash and
borrowing capabilities will be sufficient to provide working capital and fund
capital expenditures for the next 12 months.


9
 Table of Contents




Off-Balance
Sheet Arrangements and Contractual Obligations and Commitments





There
have been no material changes in the off-balance sheet arrangements and
contractual obligations and commitments disclosed in the Trust’s 2006 Form
10-K.





ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK




The
disclosure required by this Item is omitted pursuant to Item 305(e) of
Regulation S-K.





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. A system of disclosure controls and procedures is designed to
ensure that information required to be disclosed by a registrant in reports
filed with the Exchange Act are recorded, processed, summarized and reported
within the time periods specified in the applicable rules and
forms.  This includes disclosure controls and procedures designed to
ensure 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. A review of these controls and procedures was done by the
Trust as of June 30, 2007, which revealed that the following material weaknesses
previously identified continue to exist:




(i)
            a lack of sufficient personnel
      with relevant experience to develop, administer and monitor disclosure
      controls and procedures to enable the Trust to comply efficiently, or on a
      timely basis, with its financial reporting
    obligations,




(ii)
            inadequate disclosure controls
      and procedures, including inadequate record retention and review policies
      that would enable the Trust to meet its financial reporting and disclosure
      obligations in an efficient and timely
  manner.




As a
result of these weaknesses, the Trust has not timely met its reporting
obligations under the Exchange Act.




During
the quarter ended June 30, 2007, the Trust appointed a new Chief Financial
Officer who is a Certified Public Accountant with approximately 29 years of
professional accounting experience, including prior experiences as a financial
officer of publicly traded companies.





Since the
review, the Trust has implemented the following to address the above
weaknesses:




·
            Increased
      the number of degreed accountants. Additional staff expansion is
      underway.





·
            During
      the fourth quarter of 2007, the Trust expanded its disclosure controls and
      procedures. The Trust documented many of its existing informal procedures,
      established a compliance-focused disclosure committee, formalized monthly
      closing procedures, and implemented a corporate whistleblower
      policy.





The Trust
believes that the completion of the expansion of the accounting and financial
reporting staff and the implementation of the above procedures will mitigate the
above weaknesses. However, due to the Trust’s delinquencies in meeting its
filing deadlines under the Exchange Act, the Trust expects these deficiencies to
continue to be material weaknesses at least until such time as the Trust is no
longer delinquent in its Exchange Act filings.




The
Trust’s Chief Executive Officer and Chief Financial Officer have evaluated the
effectiveness of the Trust’s disclosure controls and procedures as of the end of
the period covered by this report pursuant to Rule 13a-15(b) under the Exchange
Act and concluded that, as of the end of the period covered by this report,
because of the material weaknesses noted above, the Trust’s disclosure controls
and procedures were not effective.





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, 2007 that has materially affected, or is
reasonably likely to materially affect, the Trust’s internal control over
financial reporting.


10
 Table of Contents




PART
II.   OTHER INFORMATION




ITEM 1.        LEGAL
PROCEEDINGS





There
have been no material changes to the legal proceedings disclosed in the Trust’s
2006 Form 10-K.





ITEM 1A.     RISK FACTORS





There
have been no material changes from the risk factors disclosed in the Trust’s
2006 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.





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.




11
 Table of Contents




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: 
      February 20, 2008
            By:
            /s/ 
      Randall D. HolmesRandall
      D. HolmesChief
      Executive Officer(Principal
      Executive Officer)






Date: 
      February 20, 2008
            By:
            /s/ 
      Jeffrey H. StrasbergJeffrey
      H. StrasbergExecutive
      Vice President and Chief Financial Officer(Principal
      Financial and Accounting Officer)










12