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
      1934For
      the quarterly period ended September 30, 2009oro
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from _____ to _____





Commission
File Number:   0-25430





RIDGEWOOD
ELECTRIC POWER TRUST IV


(Exact
Name of Registrant as Specified in Its Charter)





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





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





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





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





Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.  Yes x  No o





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding
12 months (or for such shorter period that the registrant was required to submit
and post such files). Yes o  No o





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





Large
      accelerated filer  o
            Accelerated
      filer  o
            Non-accelerated
      filer  o
            Smaller
      reporting company  x(Do
      not check if a smaller reporting
company)





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


Yes o  No x





As of
October 31, 2009, there were 476.8 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
            9Item 3.
            Quantitative and Qualitative Disclosures About Market
      Risk
            11Item 4.
            Controls and Procedures
            11PART
      II.
            OTHER
      INFORMATIONItem 1.
            Legal Proceedings
            12Item 1A.
            Risk Factors
            12Item 2.
            Unregistered Sales of Equity Securities and Use of
      Proceeds
            12Item 3.
            Defaults Upon Senior Securities
            12Item 4.
            Submission of Matters to a Vote of Security
      Holders
            12Item 5.
            Other Information
            12Item 6.
            Exhibits
            12SIGNATURES
            13







Table of Contents





PART
I.   FINANCIAL INFORMATION








ITEM 1. FINANCIAL STATEMENTS





RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED BALANCE SHEETS(in
      thousands, except share data)September
      30,
              
              
              December
      31,2009
              
              
              2008(unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
              
              $
              7,666
              
              
              $
              11,683Unbilled
      receivables
              
              
              -
              
              
              
              6,572Other
      receivable
              
              
              -
              
              
              
              6,461Security
      deposits
              
              
              -
              
              
              
              2,345Due
      from affiliates
              
              
              329
              
              
              
              -Prepaid
      expenses and other current assets
              
              
              33
              
              
              
              108Total
      current assets
              
              
              8,028
              
              
              
              27,169Investments
              
              
              3,860
              
              
              
              6,458Total
      assets
              
              $
              11,888
              
              
              $
              33,627LIABILITIES
      AND SHAREHOLDERS’ EQUITYCurrent
      liabilities:Accounts
      payable and accrued expenses
              
              $
              97
              
              
              $
              1,194Due
      to Indeck Energy Services
              
              
              -
              
              
              
              7,828Due
      to affiliates
              
              
              199
              
              
              
              2,771Total
      liabilities
              
              
              296
              
              
              
              11,793Commitments
      and contingenciesShareholders’
      equity (deficit):Shareholders’
      equity (476.8 Investor Sharesissued
      and outstanding)
              
              
              11,744
              
              
              
              21,884Managing
      Shareholder’s accumulated deficit(1
      management share issued and outstanding)
              
              
              (152
              )
              
              
              (50
              )Total
      shareholders’ equity
              
              
              11,592
              
              
              
              21,834Total
      liabilities and shareholders’ equity
              
              $
              11,888
              
              
              $
              33,627


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)Nine
      Months Ended September 30,
              
              
              Three
      Months Ended September 30,2009
              
              
              2008
              
              
              2009
              
              
              2008Power
      generation revenue
              
              $
              -
              
              
              $
              5,888
              
              
              $
              -
              
              
              $
              1,923Renewable
      attribute revenue
              
              
              -
              
              
              
              1,363
              
              
              
              -
              
              
              
              95Total
      revenues
              
              
              -
              
              
              
              7,251
              
              
              
              -
              
              
              
              2,018Cost
      of revenues
              
              
              -
              
              
              
              6,407
              
              
              
              -
              
              
              
              1,880Gross
      profit
              
              
              -
              
              
              
              844
              
              
              
              -
              
              
              
              138Operating
      expenses:General
      and administrative expenses
              
              
              526
              
              
              
              3,043
              
              
              
              83
              
              
              
              1,423Management
      fee to Managing Shareholder
              
              
              491
              
              
              
              395
              
              
              
              163
              
              
              
              132Total
      operating expenses
              
              
              1,017
              
              
              
              3,438
              
              
              
              246
              
              
              
              1,555Loss
      from operations
              
              
              (1,017
              )
              
              
              (2,594
              )
              
              
              (246
              )
              
              
              (1,417
              )Other
      (expense) income:Equity
      in loss of RILG
              
              
              (2,137
              )
              
              
              -
              
              
              
              (1,033
              )
              
              
              -Equity
      in (loss) income of Maine Hydro
              
              
              (231
              )
              
              
              828
              
              
              
              (139
              )
              
              
              (22
              )Equity
      in income of Indeck Maine
              
              
              -
              
              
              
              1,560
              
              
              
              -
              
              
              
              1,036Interest
      income, affiliates
              
              
              -
              
              
              
              324
              
              
              
              -
              
              
              
              115Other
      income (expense), net
              
              
              367
              
              
              
              (15
              )
              
              
              (8
              )
              
              
              (15
              )Total
      other (expense) income, net
              
              
              (2,001
              )
              
              
              2,697
              
              
              
              (1,180
              )
              
              
              1,114Net
      (loss) income
              
              
              (3,018
              )
              
              
              103
              
              
              
              (1,426
              )
              
              
              (303
              )Net
      loss attributable to noncontrolling interest
              
              
              -
              
              
              
              424
              
              
              
              -
              
              
              
              265Net
      (loss) income attributable to Trust
              
              $
              (3,018
              )
              
              $
              527
              
              
              $
              (1,426
              )
              
              $
              (38
              )Managing
      Shareholder – Net (loss) income
              
              $
              (30
              )
              
              $
              5
              
              
              $
              (14
              )
              
              $
              (1
              )Shareholders
      – Net (loss) income
              
              
              (2,988
              )
              
              
              522
              
              
              
              (1,412
              )
              
              
              (37
              )Net
      (loss) income per Investor Share
              
              
              (6,267
              )
              
              
              1,096
              
              
              
              (2,962
              )
              
              
              (77
              )Distributions
      per Investor Share
              
              
              15,000
              
              
              
              -
              
              
              
              -
              
              
              
              -


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




2
 Table of Contents





RIDGEWOOD
      ELECTRIC POWER TRUST IVCONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited,
      in thousands)Nine
      Months Ended September 30,2009
              
              
              2008Cash
      flows from operating activities:Net
      (loss) income attributable to Trust
              
              $
              (3,018
              )
              
              $
              527Adjustments
      to reconcile net (loss) income to net cash provided by (used in) operating
      activities:Depreciation
      and amortization
              
              
              -
              
              
              
              1,046Interest
      income on notes receivable
              
              
              -
              
              
              
              (303
              )Net
      loss attributable to noncontrolling interest
              
              
              -
              
              
              
              (424
              )Equity
      interest in loss (income) of:RILG
              
              
              2,137
              
              
              
              -Maine
      Hydro
              
              
              231
              
              
              
              (828
              )Indeck
      Maine
              
              
              -
              
              
              
              (1,560
              )Cash
      distributions from RILG
              
              
              230
              
              
              
              -Cash
      distributions from Maine Hydro
              
              
              -
              
              
              
              888Changes
      in operating assets and liabilities:Accounts
      receivable
              
              
              -
              
              
              
              688Unbilled
      receivables
              
              
              6,572
              
              
              
              -Other
      receivable
              
              
              6,461
              
              
              
              -Security
      deposits
              
              
              2,345
              
              
              
              (3,059
              )Prepaid
      expenses and other current assets
              
              
              75
              
              
              
              (177
              )Accounts
      payable and accrued expenses
              
              
              (1,097
              )
              
              
              170Due
      to Indeck Energy Services
              
              
              (7,828
              )
              
              
              -Due
      to/from affiliates, net
              
              
              (2,901
              )
              
              
              (30
              )Total
      adjustments
              
              
              6,225
              
              
              
              (3,589
              )Net
      cash provided by (used in) operating activities
              
              
              3,207
              
              
              
              (3,062
              )Cash
      flows from financing activities:Proceeds
      from loan payable to affiliate
              
              
              -
              
              
              
              3,000Cash
      distributions to noncontrolling interest
              
              
              -
              
              
              
              (500
              )Cash
      distributions to shareholders
              
              
              (7,224
              )
              
              
              -Net
      cash (used in) provided by financing activities
              
              
              (7,224
              )
              
              
              2,500Net
      decrease in cash and cash equivalents
              
              
              (4,017
              )
              
              
              (562
              )Cash
      and cash equivalents, beginning of period
              
              
              11,683
              
              
              
              781Cash
      and cash equivalents, end of period
              
              $
              7,666
              
              
              $
              219


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.           DESCRIPTION
OF BUSINESS





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





The
Trust’s accompanying condensed consolidated financial statements include the
accounts of the Trust. The Trust’s condensed consolidated financial statements
also include the Trust’s 35.24% interest in Rhode Island LFG Genco, LLC
(“RILG”), effective November 17, 2008, and its 50% interest in Ridgewood Maine
Hydro Partners, L.P. (“Maine Hydro”), 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
investments. The Trust owned a 25% interest in Indeck Maine Energy, LLC
(“Indeck Maine”), accounted for under the equity method of accounting, which was
sold in December 2008.





Prior to
November 17, 2008, the Trust owned a 64.3% interest in Ridgewood Providence
Power Partners, L.P. (“Ridgewood Providence”) and the remaining
35.7% interest was owned by Ridgewood Electric Power Trust III (“Trust
III”). On November 17, 2008, the Trust and Trust III entered directly
or indirectly, through one or more subsidiaries, into a series of agreements
relating to Ridgewood Providence’s operations. The principal purpose of
these agreements was to consolidate the Rhode Island landfill activities owned
by the Trust, Ridgewood Electric Power Trust I (“Trust I”), Trust III and
Ridgewood Power B Fund/Providence Expansion (“B Fund”) under one entity,
RILG. As a result of the completion of the transaction, the Trust, Trust I,
Trust III and B Fund own all of the equity interests in RILG. The Trust
contributed its 64.3% interest in Ridgewood Providence in exchange for its
35.24% interest in RILG. Effective November 17, 2008, the Trust’s interest
in RILG is accounted for under the equity method of accounting and therefore,
the Trust no longer consolidates the assets, liabilities, revenues and expenses
of Ridgewood Providence.





The
Managing Shareholder is marketing RILG and Maine Hydro for sale, which represent
the only remaining investments of the Trust. The Managing Shareholder cannot
predict the timing of the sale process, the terms of any sale or whether
any sales will occur.





2.           BASIS
OF PRESENTATION





The
accompanying condensed consolidated financial statements are unaudited and 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 (“GAAP”) have been condensed or omitted pursuant to SEC rules.
These condensed consolidated financial statements should be read in conjunction
with the Trust’s Annual Report on Form 10-K for the year ended December 31,
2008 filed with the SEC on April 3, 2009 (the “2008 Form 10-K”). No significant
changes have been made to the Trust’s accounting policies and estimates
disclosed in its 2008 Form 10-K.





In the
opinion of management, the condensed consolidated financial statements as of
September 30, 2009, and for the nine and three months ended September 30,
2009 and 2008, 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 nine and three months ended September 30, 2009 and 2008, are
not necessarily indicative of the results to be expected for the full year or
any other period.





The Trust
has evaluated subsequent events and transactions through November 9, 2009, the
date of the issuance of its financial statements, and concluded that there were
no such events or transactions that require adjustment to, or disclosure in the
notes to, the condensed consolidated financial statements.





3.           RECENT
ACCOUNTING PRONOUNCEMENTS





Fair
Value Measurements





In
February 2008, the Financial Accounting Standards Board (“FASB”) issued guidance
which delayed the effective date of fair value measurements for non-financial
assets and non-financial liabilities for the Trust until January 1, 2009, except
for items that are recognized or disclosed at fair value in the financial
statements on a recurring basis. The Trust adopted this guidance effective
January 1, 2009, with no material impact on the Trust’s condensed
consolidated financial statements.




4
 Table of Contents


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


In April
2009, the FASB issued additional guidance relating to factors to consider in
estimating fair value when there has been a significant decrease in market
activity for a financial asset. The Trust adopted this guidance effective June
30, 2009, with no material impact on the Trust’s condensed consolidated
financial statements.





In August
2009, the FASB amended its previous guidance regarding the fair value
measurements and disclosures in order to reduce potential uncertainty in
financial reporting when measuring the fair value of liabilities. The Trust
adopted this guidance effective September 30, 2009, with no material impact on
the Trust’s condensed consolidated financial statements.





Noncontrolling
Interests in Consolidated Financial Statements





In
December 2007, the FASB issued guidance regarding noncontrolling
interests in consolidated financial statements, which requires that ownership
interests in subsidiaries held by parties other than the parent, and the amount
of consolidated net income attributable to noncontrolling interests, be clearly
identified, labeled, and presented in the consolidated financial
statements within equity, but separate from the parent’s equity. It also
requires that 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. This guidance became effective for the Trust beginning
January 1, 2009. Except for the presentation and disclosure requirements,
which are applied retrospectively for all periods presented subsequent to the
adoption, the adoption of this guidance had no material impact on the
Trust’s condensed consolidated financial statements.





Subsequent
Events





In May
2009, the FASB issued guidance regarding subsequent events which establishes
general standards of accounting for and disclosure of events that occur after
the balance sheet date but before financial statements are issued or are
available to be issued. It requires the disclosure of the date through which an
entity has evaluated subsequent events and the basis for that date. The Trust
adopted this guidance effective June 30, 2009, with no material impact on the
Trust’s condensed consolidated financial statements.





Consolidation
of Variable Interest Entities





In June
2009, the FASB amended previous guidance regarding the consolidation of variable
interest entities. This guidance eliminates exceptions to consolidating
qualifying special-purpose entities, contains new criteria for determining the
primary beneficiary, and increases the frequency of required reassessments to
determine whether a company is the primary beneficiary of a variable interest
entity. This guidance also contains a new requirement that any term,
transaction, or arrangement that does not have a substantive effect on an
entity’s status as a variable interest entity, a company’s power over a variable
interest entity, or a company’s obligation to absorb losses or its right to
receive benefits of an entity must be disregarded in applying the guidance to
consolidation of variable interest entities. This guidance will become effective
for the Trust beginning January 1, 2010. The Trust is currently evaluating
the impact of adopting this guidance on its condensed consolidated
financial statements.





FASB
Accounting Standards Codification





In June 2009, the
FASB announced the FASB Accounting Standards Codification (the “Codification”)
as the single source of authoritative non-governmental GAAP superseding
existing codification from the FASB, American Institute of Certified Public
Accountants, Emerging Issues Task Force, and related accounting literature.
Effective September 30, 2009, the Codification superseded all existing non-SEC
accounting and reporting standards and all other non-grandfathered non-SEC
accounting literature not included in the Codification became
non-authoritative.  The Trust adopted the Codification with no
material impact on its condensed consolidated financial
statements.





4.           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. At September 30, 2009, cash
and cash equivalents exceeded federal insured limits by $7,250, all of which was
invested either in US Treasury bills or money market accounts that invest solely
in US government securities.




5
 Table of Contents


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


5.           INVESTMENTS





RILG





Summarized
statements of operations data for RILG for the nine and three months ended
September 30, 2009 were as follows:




Nine
      Months Ended
              
              
              Three
      Months EndedSeptember
      30, 2009
              
              
              September
      30, 2009Revenues
              
              $
              10,401
              
              
              $
              3,429Gross
      loss
              
              
              (2,112
              )
              
              
              (756
              )Loss
      from operations
              
              
              (6,059
              )
              
              
              (2,930
              )Net
      loss
              
              
              (6,063
              )
              
              
              (2,931
              )Trust
      share of loss in RILG
              
              
              (2,137
              )
              
              
              (1,033
              )


Operating
performance of Ridgewood Providence for the nine and three months ended
September 30, 2008 is consolidated into the operating results of the Trust for
these periods with $424 and $265, respectively, attributed to the noncontrolling
interest held by Trust III.





During the third quarter of 2009, RILG
recorded an impairment charge of $1,207 due to the decision made by the
Managing Shareholder not to repair certain long-lived assets that were taken out
of service for non-performance. As this equipment has only nominal salvage
value, upon determination that the assets would not be restored to an operating
status, their asset value was written off. The Trust’s share of the impairment
charge was included in equity loss in RILG in the accompanying condensed
consolidated statements of operations.





Maine
Hydro





Maine
Hydro is owned equally by the Trust and Ridgewood Electric Power Trust V (“Trust
V”). Summarized statements of operations data for Maine Hydro for the nine and
three months ended September 30, 2009 and 2008 were as follows:





Nine
      Months Ended September 30,
              
              
              Three
      Months Ended September 30,2009
              
              
              2008
              
              
              2009
              
              
              2008Revenues
              
              $
              2,045
              
              
              $
              4,081
              
              
              $
              470
              
              
              $
              907Gross
      profit (loss)
              
              
              336
              
              
              
              2,055
              
              
              
              (166
              )
              
              
              193(Loss)
      income from operations
              
              
              (462
              )
              
              
              1,656
              
              
              
              (278
              )
              
              
              (43
              )Net
      (loss) income
              
              
              (462
              )
              
              
              1,656
              
              
              
              (278
              )
              
              
              (43
              )Trust
      share of (loss) income in Maine Hydro
              
              
              (231
              )
              
              
              828
              
              
              
              (139
              )
              
              
              (22
              )
 
 6
 Table of Contents


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


Indeck
Maine





On
December 22, 2008, the owners of Indeck Maine sold their interests to Covanta
Energy Corporation (“Covanta”). Immediately prior to the sale in 2008, Indeck
Maine transferred to a wholly-owned subsidiary of the Trust, specific accounts
receivable, deposits and rights to future cash flows. As these amounts were
collected, in accordance with an agreement between the Trust, Trust V and
Indeck Energy Services, Inc. (“IES”), 45% was distributed to IES, 27.5%
distributed to Trust V and the Trust retained the other 27.5%. As
of June 30, 2009, the entire amount that were due to Trust V and
IES under these arrangements  had been distributed.





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




Nine
      Months Ended
              
              
              Three
      Months EndedSeptember
      30, 2008
              
              
              September
      30, 2008Revenues
              
              $
              32,094
              
              
              $
              10,929Gross
      profit
              
              
              5,294
              
              
              
              2,635Income
      from operations
              
              
              4,683
              
              
              
              2,608Net
      income
              
              
              3,554
              
              
              
              2,222Trust
      share of income in Indeck Maine
              
              
              1,560
              
              
              
              1,036


The Trust
assigned the excess purchase price over the net assets acquired to fixed assets.
The Trust depreciated the fixed assets over their remaining useful lives using
the unit of production method. Depreciation expense of $217 and $75 for the
nine and three months ended September 30, 2008, respectively, was included in
the equity income from Indeck Maine in the condensed consolidated statements of
operations.





6.           TRANSACTIONS
WITH AFFILIATES





The Trust
records short-term payables to and receivables from certain of its affiliates in
the ordinary course of business. The amounts payable to and receivable from its
affiliates, other than amounts relating to management fees, do not bear
interest. At September 30, 2009 and December 31, 2008, the Trust had outstanding
receivables and payables as follows:





Due
      From
            
            
            Due
      ToSeptember
      30,
              2009
            
            
            September
      30,
              2009
            
            
            December
      31,
              2008Ridgewood
      Power Management LLC
            
            $
            -
            
            
            $
            2
            
            
            $
            20Ridgewood
      Renewable Power LLC
            
            
            -
            
            
            
            -
            
            
            
            8Trust
      V
            
            
            -
            
            
            
            -
            
            
            
            2,570RILG
            
            
            329
            
            
            
            -
            
            
            
            171Maine
      Hydro
            
            
            -
            
            
            
            197
            
            
            
            2$
            329
            
            
            $
            199
            
            
            $
            2,771





7.           COMMITMENTS
AND CONTINGENCIES





Effective
July 20, 2009, the U.S. National Oceanic and Atmospheric Administration (“NOAA”)
and the U.S. Fish and Wildlife Service (“USFWS”) extended Endangered Species Act
protections for Atlantic salmon by defining the territory in which Atlantic
salmon is considered endangered species and in which their habitat is protected.
Management has assessed the fifteen dams owned by Maine Hydro and determined
that eight of these dams may be affected at some future time. One of the next
steps expected to be taken by NOAA and USFWS is the development of habitat
conservation plans to protect Atlantic salmon in this defined territory. The
time for NOAA and USFWS to finalize such plans is unknown. These plans could
require Maine Hydro and other dam owners throughout the affected area to
demonstrate that, if Atlantic salmon have been seen at a dam, existing fish
passage is effective to allow those salmon to pass the dam.  As a result,
Maine Hydro may be required to install effective fish passage measures or to
take other corrective actions. At the present time, the Managing Shareholder is
unable to determine the cost to implement such measures, if required, or when
NOAA and USFWS may require them. Depending on the final requirements of such
plans, the cost of compliance could exceed the value of the affected
hydro-electric facilities. Until such time as the requirements of any plan are
determined, the Managing Shareholder may need to restrict cash distributions
from Maine Hydro to the Trust and Trust V.




7
 Table of Contents


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


As part
of the Ridgewood Providence reorganization, RILG is obligated under the terms of
various agreements with Rhode Island Resource Recovery Corporation (“RIRRC”),
the owner and operator of the Central Landfill in Johnston, Rhode Island (the
“Landfill”), to assume primary responsibility for costs associated with the
landfill gas collection system at the Landfill as of the first to occur of the
commencement of operation of a new electric generating facility to be
constructed near the Landfill by RILG or June 1, 2013. If RILG fails to comply
with these obligations, RILG could be subject to monetary damages and also
forfeit its contracted gas rights. RILG is responsible for the development and
construction of a sulfur treatment facility on the Landfill and the construction
of new pipes and headers. The cost of building and operating the sulfur
treatment facility and the pipes and headers is estimated to be approximately
$5,000. The cost of the sulfur treatment facility will be split equally
between RILG and RIRRC and the entire cost associated with the construction of
pipes and headers will be paid by RILG. In addition, the cost of new flares
on the Landfill will be borne by RIRRC, but in certain circumstances, the costs
may be shared with RILG. RILG has insufficient capital to expand its operations
fully. As a result, RILG will either have to be sold to entities that can invest
in the development of these projects or have to obtain third-party financing to
perform its duties under the various agreements. While the Managing Shareholder
believes a portion of such financing will be available, there can be no
assurance whether or when RILG can obtain sufficient financing or obtain it on
satisfactory terms.





RILG and
several of its affiliates had an agreement with a power marketer for which they
were committed to sell Renewable Portfolio Standards Attributes (“RPS
Attributes”) derived from their electric generation. The agreement provided such
power marketer with six separate annual options to purchase such attributes from
2004 through 2009 at fixed prices, as defined in the agreement. If RILG and the
affiliates failed to supply the required number of RPS Attributes, liquidated
damages could have been assessed. The power marketer did not exercise its option
to purchase 2009 RPS Attributes, and a deposit provided by RILG and its
affiliates to secure their obligations under the option agreement was returned
by April 2009. All required RPS Attributes were supplied in April 2009 and the
contract expired according to its terms on June 15, 2009.





In
July 2009, the purchaser elected to exercise its one-time option to terminate a
long-term power purchase agreement with RILG, effective January 2010. RILG is
currently seeking alternate arrangements for the sale of the output of its
electricity generating capacity in lieu of selling the output at open market
spot prices.  Whether this effort will be successful and what the results
to RILG will be if successful cannot be determined at this
time.





On
August 16, 2006, the Trust and several affiliated entities, including the
Managing Shareholder, filed lawsuits against the former independent registered
public accounting firm for the Trust and several affiliated entities, Perelson
Weiner LLP (“Perelson Weiner”), in New Jersey Superior Court. The suit alleged
professional malpractice and breach of contract in connection with audit and
accounting services performed for the Trust and other plaintiffs by Perelson
Weiner. On October 20, 2006, Perelson Weiner filed a counterclaim against
the Trust and other plaintiffs, alleging breach of contract due to unpaid
invoices with a combined total of approximately $1,200. Discovery is ongoing and
the trial date was rescheduled to February 1, 2010. The costs and expenses of
this litigation, including adverse judgments, if any, are being paid by the
Managing Shareholder and affiliated management companies and not the underlying
investment funds.





The Trust
may become subject to legal proceedings involving ordinary and routine claims
related to its business. The ultimate legal and financial liability with
respect to all 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 in this Note with certainty and some
lawsuits, claims or proceedings may be disposed of unfavorably to the Trust,
based on its evaluation of matters which are pending or asserted, the Trust’s
management believes the disposition of such matters will not have a material
adverse effect on the Trust’s business or its financial condition or results of
operations.





8
 Table of Contents





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





This
discussion and analysis of the operating results and financial condition of the
Trust as of September 30, 2009 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 nine and three months ended September 30, 2009 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 as well as the consolidated financial
statements, notes and other supplemental information
and Item 7. “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” included in the Trust’s 2008 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 expectations, opinions
and estimates as of the date they are made. Although management believes that
the expectations, opinions and estimates reflected in these forward-looking
statements are reasonable, such forward-looking statements are subject to known
and unknown risks and uncertainties that may be beyond the Trust’s control,
which could cause actual results, performance and achievements to differ
materially from the results, performance and achievements projected, expected,
expressed or implied by the forward-looking statements. Examples of events that
could cause actual results to differ materially from historical results or those
anticipated include:




·
            the
      timing or terms of any sale of the Trust’s assets,·
            whether RILG will be
      able to obtain financing required to expand and make other changes to its
      operations described in Part I, Item 1, Note 7. “Commitments and
      Contingencies” of this report,·
            the
      outcome of the matters described in Part I, Item 1, Note 7.
      “Commitments and Contingencies” of this report,·
            the
      ability to secure a long-term contract for the sale of energy produced by
      RILG,·
            changes
      in political or economic conditions, or federal or state regulatory
      structures, cost of installing fish passage at Maine Hydro facilities
      including costs associated with the endangered species
      regulations,·
            government
      mandates,·
            the
      ability of customers to pay for energy received,·
            supplies
      of fuels,·
            operational
      status of generating plants, including mechanical breakdowns,
      and·
            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 this
report and in Item 1A. “Risk Factors”, Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and
elsewhere in the Trust’s 2008 Form 10-K. Any forward-looking statement that the
Trust makes, speaks only as of the date of this report. The Trust undertakes no
obligation to publicly update or revise any forward-looking statements or
cautionary factors, as a result of new information, future events or otherwise,
except as required by law.





Overview





Historical
operating revenues and cost of revenues of the Trust for the nine and three
months ended September 30, 2008 have been derived from Ridgewood Providence’s
operations. As the Trust no longer consolidates Ridgewood Providence and instead
accounts for its investment in RILG as an equity interest, the Trust does not
anticipate having any future reported operating revenues and expenses. RILG’s
reorganization and the sale of Indeck Maine have significantly affected the
comparability of the Trust’s period-to-period financial statements.





Critical
Accounting Policies and Estimates





The
following discussion and analysis of the Trust’s financial condition and results
of operations are based upon the Trust’s condensed consolidated financial
statements, which have been prepared in conformity with GAAP. In preparing these
financial statements, the Trust is required to make certain estimates and
assumptions that affect the reported amount of the Trust’s assets, liabilities,
revenues and expenses including the disclosure of contingent assets and
liabilities. The Trust evaluates these estimates and assumptions on an
ongoing basis. The Trust bases its estimates and assumptions on historical
experience and on various other factors that the Trust believes to be reasonable
at the time the estimates and assumptions are made. However, future events and
their effects cannot be predicted with absolute certainty. Therefore, the
determination of estimates requires the exercise of judgment. Actual results may
differ from these estimates and assumptions under different circumstances or
conditions, and such differences may be material to the condensed consolidated
financial statements. No material changes have been made to the Trust’s critical
accounting policies and estimates disclosed in its 2008 Form 10-K.




9
 Table of Contents





Results
of Operations and Changes in Financial Condition





Nine
months ended September 30, 2009 compared to the nine months ended September 30,
2008





Revenues
and cost of revenues for the nine months ended September 30, 2008 were derived
from Ridgewood Providence’s operations. Due to the reorganization affecting
Ridgewood Providence, effective November 17, 2008, the Trust recorded its
interest in the RILG investment using the equity method of accounting, which
eliminated the need to consolidate Ridgewood Providence results of operations in
the 2009 period.





General
and administrative expenses decreased $2.5 million from $3 million for the
nine months ended September 30, 2008 to $0.5 million for the same period in
2009. This decrease was primarily due to the change in accounting for its
investment in Ridgewood Providence and also due to a decrease in professional
fees.





As a
result of the Ridgewood Providence reorganization, the Trust recorded its
interest in RILG investment using the equity method of accounting. For the nine
months ended September 30, 2009, the Trust recorded equity loss of $2.1 million
from its investment in RILG. RILG incurred a loss in the 2009 period compared to
Ridgewood Providence’s operating results in the 2008 period, primarily due to an
increase in depreciation expense resulting from a change in estimated useful
lives of a portion of the remaining plant assets and also due to an impairment
charge recorded for the third quarter of 2009 as certain long-lived assets were
fully impaired as the Managing Shareholder made the decision of not repairing
these long-lived that were taken out of service for non-performance and these
assets have nominal salvage value. Operating results of RILG in the 2009 period
also includes $2.3 million of engineering development and legal fees relating to
planned plant expansion. In July 2009, the purchaser to whom RILG currently
sells the output from approximately 60% of its installed capacity under a
long-term power purchase agreement, elected to exercise its one-time option to
terminate that agreement effective January 2010. The aggregate price for the
output sold under this long-term contract exceeds current open market prices.
RILG is currently seeking alternate arrangements for the sale of the output of
its electricity generating capacity. Whether this effort will be successful and
what the results to RILG will be if successful cannot be determined at this
time. However, beginning in January 2010, if this production is sold at prices
which approximate current spot market prices, average revenue per kilowatt hour
produced will be lower than it is currently.





For the
nine months ended September 30, 2009, the Trust recorded equity loss of $0.2
million from its investment in Maine Hydro compared to equity income of $0.8
million for the same period in 2008. The decrease in equity income of
approximately $1 million in the 2009 period was primarily due to a decrease in
power generation revenue by approximately 55% resulting from lower electricity
prices compared to the 2008 period. At the end of 2008, eleven long-term
electric power sales contracts expired and in the 2009 period, approximately 75%
of Maine Hydro revenue is generated through electric output sold at market
price, the average rate of which is significantly lower than the prior contract
price.





For the
nine months ended September 30, 2008, the Trust recorded equity income of $1.6
million from its investment in Indeck Maine. During the fourth quarter of 2008,
Indeck Maine was sold to Covanta.





For the
nine months ended September 30, 2008, the Trust recorded interest income of $0.3
million which represented interest earned on Indeck Maine’s note receivable
balance.





For the
nine months ended September 30, 2009, the Trust recorded other income of $0.4
million, which primarily represents the sale of RPS Attributes that were
associated with electricity produced by Indeck Maine’s project prior to its
sale.





The Trust
recorded a noncontrolling interest in the loss of subsidiary of $0.4 million for
the nine months ended September 30, 2008, relating to the portion of Ridgewood
Providence owned by affiliates of the Trust.





Total
assets decreased $21.7 million from $33.6 million at December 31, 2008 to $11.9
million at September 30, 2009. This was primarily due to the collection of
amounts related to Indeck Maine’s operations and the subsequent related
distributions to Trust V, IES and Trust shareholders. Total liabilities
decreased $11.5 million from $11.8 million at December 31, 2008 to $0.3 million
at September 30, 2009. This was primarily due to distributions made to Trust V
and IES relating to the sale of Indeck Maine.





Three
months ended September 30, 2009 compared to the three months ended September 30,
2008





In the
third quarter of 2008, revenues and cost of revenues were derived from Ridgewood
Providence’s operations. In the 2009 period, the Trust recorded its interest in
the RILG investment using the equity method of accounting, which eliminated the
need to consolidate Ridgewood Providence results of operations.





General
and administrative expenses decreased $1.3 million from $1.4 million for
the third quarter of 2008 to $0.1 million for the same period in 2009 primarily
due to the change in accounting for its investment in Ridgewood Providence and
also due to a decrease in professional fees in the 2009
period.




10
 Table of Contents





As a result of the Ridgewood Providence
reorganization, the Trust recorded equity loss of $1 million from its investment
in RILG in the third quarter of 2009, compared to Ridgewood Providence’s
operating results in the 2008 period, primarily due to an increase in
depreciation expenses resulting from a change in estimated useful lives of a
portion of the plant assets and also due to an impairment charge recorded for
the third quarter of 2009 as certain long-lived assets were fully impaired as
the Managing Shareholder made the decision of not repairing these long-lived
that were taken out of service for non-performance and these assets have nominal
salvage value.





In the
third quarter of 2008, the Trust recorded equity income of $1 million from its
investment in Indeck Maine. During the fourth quarter of 2008, Indeck Maine was
sold to Covanta.





In the
third quarter of 2008, the Trust recorded a noncontrolling interest in the loss
of subsidiary of $0.3 million relating to the portion of Ridgewood Providence
owned by affiliates of the Trust.





Liquidity
and Capital Resources





Nine
months ended September 30, 2009 compared to the nine months ended September 30,
2008





At
September 30, 2009 the Trust had cash and cash equivalents of $7.7 million,
a decrease of $4 million from $11.7 million at December 31, 2008. Cash
flows for the nine months ended September 30, 2009 were $3.2 million provided by
operating activities and $7.2 million used in financing
activities.





Cash
provided by operating activities for the nine months ended September 30, 2009
was $3.2 million as compared to cash used in operating activities of $3.1
million for the same period in 2008. This increase in cash flow provided by
operating activities of $6.3 million in the 2009 period was primarily due
to the collection of amounts related to Indeck Maine’s operations net of related
distributions to Trust V and IES.





The Trust
used cash for financing activities of $7.2 million for the nine months ended
September 30, 2009 as compared to cash provided by financing activities of $2.5
million for the same period in 2008. Cash used in the 2009 period included cash
distributions to shareholders and cash provided in the 2008 period included
$3 million in loan payable to the Managing Shareholder in connection with
deposits, partially offset by $0.5 million in cash distributions to the
noncontrolling shareholder of Ridgewood Providence.





Future
Liquidity and Capital Resource Requirements





The Trust
expects cash distributions from its equity investments, along with existing
cash, cash equivalents and borrowing capabilities will be sufficient to provide
working capital and fund capital expenditures for the next 12 months.
Distributions to the Trust from Maine Hydro could be limited in the future due
to the impact of recently enacted endangered species regulations as discussed in
Part II, Item 1A. “Risk Factors” of this report.





Off-Balance
Sheet Arrangements and Contractual Obligations and Commitments





The Trust
currently has no off-balance sheet arrangements as the Trust and its affiliates
were not liable for any liquidated damages since the power marketer did not
exercise its option to purchase 2009 RPS Attributes and all required RPS
Attributes were supplied in April 2009 as discussed in Part I, Item 1, Note 7.
“Commitments and Contingencies”.





There
have been no material changes in the contractual obligations and commitments
disclosed in the Trust’s 2008 Form 10-K.





ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK





Not
required.





ITEM 4.   CONTROLS AND PROCEDURES





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




11
 Table of Contents





Changes
in Internal Control over Financial Reporting





The
Trust’s Chief Executive Officer and Chief Financial Officer have concluded that
there was no change in the Trust's internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that occurred
during the quarter ended September 30, 2009 that has materially affected, or is
reasonably likely to materially affect, the Trust’s internal control over
financial reporting.





PART
II.   OTHER INFORMATION





ITEM
1.               LEGAL
PROCEEDINGS





There
have been no material changes to the legal proceedings disclosed in the Trust’s
2008 Form 10-K.





ITEM
1A.             RISK
FACTORS





Other
than the matter discussed in the following paragraph, there have been no
material changes to the risk factors disclosed in the Trust’s 2008 Form
10-K.





Effective
July 20, 2009, NOAA and USFWS extended Endangered Species Act protections for
Atlantic salmon by defining the territory in which Atlantic salmon is considered
endangered species and in which their habitat is protected. Management has
assessed the fifteen dams owned by Maine Hydro and determined that eight of
these dams may be affected at some future time. One of the next steps expected
to be taken by NOAA and USFWS is the development of habitat conservation plans
to protect Atlantic salmon in this defined territory. The time for NOAA and
USFWS to finalize such plans is unknown. These plans could require Maine Hydro
and other dam owners throughout the affected area to demonstrate that, if
Atlantic salmon have been seen at a dam, existing fish passage is effective to
allow those salmon to pass the dam.  As a result, Maine Hydro may be
required to install effective fish passage measures or to take other corrective
actions. At the present time, the Managing Shareholder is unable to determine
the cost to implement such measures, if required, or when NOAA and USFWS may
require them. Depending on the final requirements of such plans, the cost of
compliance could exceed the value of the affected hydro-electric facilities.
Until such time as the requirements of any plan are determined, the Managing
Shareholder may need to restrict cash distributions from Maine Hydro to the
Trust and Trust V.





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.
            
            Description10.1
            *
            Amendment
      to Senior Executive Bonus Plan.31.1
            *
            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.





12
 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:
      November 9, 2009
            By:
            /s/ 
      Randall D. HolmesRandall
      D. HolmesPresident
      and Chief Executive Officer(Principal
      Executive Officer)Date:
      November 9, 2009
            By:
            /s/ 
      Jeffrey H. StrasbergJeffrey
      H. StrasbergExecutive
      Vice President and Chief Financial Officer(Principal
      Financial and Accounting Officer)