UNITED STATES    
    
SECURITIES AND EXCHANGE COMMISSION    
    
Washington, D.C. 20549    
    
FORM 10-Q    
    
    
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15  
OF THE SECURITIES EXCHANGE ACT OF 1934    
    
For the quarterly period ended        March 31, 1997    
    
Commission File Number     0-25430    
    
RIDGEWOOD ELECTRIC POWER TRUST IV  
(Exact name of registrant as specified in its charter.)  
    
Delaware, U.S.A.                    22-3324608        
(State or other jurisdiction of          (I.R.S. Employer    
incorporation or organization)          Identification No.)    
     
947 Linwood Avenue, Ridgewood, New Jersey       07450-2939       
(Address of principal executive offices)                    
(Zip Code)    
    
Registrant's telephone number, including area code:  (201)   
447-9000    
    
     Indicate by check mark whether the registrant(1) has   
filed all reports required to be filed by Section 13 or   
15(d) of the Securities Exchange Act of 1934 during the   
preceding 12 months (or for such shorter period that the   
registrant was required to file such reports), and (2) has   
been subject to such filing requirements for the past 90   
days.    
    
    
                         YES [X]        NO [ ]    
<PAGE>  
    
  
PART I. - FINANCIAL INFORMATION  
    
<TABLE>  
RIDGEWOOD ELECTRIC POWER TRUST IV  
CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
<CAPTION>  
  
                          March 31,      December 31,  
                              1997            1996  
<S>                   <C>              <C>  
  
Assets  
  
Cash and cash 
  equivalents          $ 21,635,276     $ 22,685,829  
Maintenance reserve 
  fund                      394,070          394,070 
Accounts receivable, 
  trade                     559,439        1,065,181  
Other receivables            88,216          109,999  
Spare parts inventory       383,810          383,810  
Prepaid royalty  
  expense                         0          144,535  
Prepaid other                 3,721                0  
Total current 
  assets                 23,064,532       24,783,424  
 
Investments: 
 
Investment in  
  hydroelectric  
  projects                7,092,082        6,806,511  
Electric power 
  equipment held 
  for resale                461,582          455,182  
Deferred due 
  diligence costs           309,100          245,828  
 
Plant and  
  equipment:             12,855,525       11,889,451  
 
Less-accumulated 
  depreciation             (477,203)        (357,109) 
 
Electric power 
  sales contract          8,266,096        8,266,096  
Less-accumulated 
  amortization             (528,111)        (390,343) 
 
Debt reserve fund           575,441          575,441  
 
Total assets           $ 51,619,044     $ 52,274,481  
  
Liabilities and  
 Shareholders'   
 Equity  
  
Current maturities 
  of long-term debt     $   538,191     $    538,191  
Accounts payable  
  and accrued  
  expenses                  545,937          569,106  
Due to affiliates           383,492           92,057  
  Total current 
    liabilities           1,467,620        1,199,354  
 
Long-term debt, 
  less current 
  portion                 5,310,498        5,440,260  
Minority interest in 
  the Providence 
  Project                 6,697,675        6,888,268  
 
Commitments and 
  contigencies                                        
 
Shareholders' equity  
  (476.8 and 746.8 
  shares issued 
  and out- standing 
  at 03/31/97 and  
  12/31/96,  
  respectively)          37,870,396       38,829,963  
Retained earnings/ 
  (deficit)                 272,855          (83,364)  
  Total shareholders'  
    equity               38,143,251       38,746,599  
  
Total liabilities  
  and shareholders'  
  equity               $ 51,619,044     $ 52,274,481  
<FN>  
See Accompanying Notes to Financial Statements    
</TABLE>  
<PAGE>  
  
<TABLE>  
RIDGEWOOD ELECTRIC POWER TRUST IV  
STATEMENTS OF OPERATIONS  
FOR THE THREE MONTHS   
ENDED MARCH 31, 1997 AND MARCH 31, 1996  
(Unaudited)  
<CAPTION>  
  
                               Three months      Three months  
                              ended March 31,   ended March 31,  
                                  1997             1996  
<S>                            <C>              <C>            
 
Net sales                     $ 1,682,179       $    2,439      
Sublease income                    92,250                0      
  Total revenue                 1,774,429            2,439      
 
Cost of sales,  
 including depreciation 
 and amortization  
 of $257,862 in  
 1997                           1,188,235                0       
 
Gross profit                      586,194            2,439       
  
General and administrative 
  expenses                        103,296           20,464     
Management fee                    292,980           46,970    
Investment fee                        400          181,295     
Project due diligence costs         5,479                0    
Other expenses                      7,454                0    
  Total other 
   operating expenses             409,609          248,729    
  
Income (loss) from 
  operations                      176,585         (246,290)   
 
Other income (expense): 
  Interest and  
   dividend income                249,470           61,911    
  Interest expense               (167,450)               0    
  Income from 
   hydroelectric 
   projects                       227,197                0    
    Net other income              309,217           61,911    
 
Income (loss) before 
  minority interest               485,802         (184,379)   
 
Minority interest in 
  the earnings of the 
  Providence Project             (129,582)               0    
 
Net income (loss)             $   356,220       $ (184,379)   
 
<FN>  
See Accompanying Notes to Financial Statements  
</TABLE>  
<PAGE>  
  
<TABLE>  
RIDGEWOOD ELECTRIC POWER TRUST IV  
STATEMENTS OF CASH FLOWS  
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND   
MARCH 31, 1996  
(Unaudited)  
                             
  
<CAPTION>  
  
                             Three months     Three months  
                            ended March 31,  ended March 31,  
                                 1997             1996  
<S>                          <S>            <C>                
 
Cash flows from 
 operating activities: 
  Net income (loss)          $    356,220     $   (184,379) 
    
Adjustments to reconcile 
 net income (loss) to 
 net cash provided by 
 (used in) operating 
 activities: 
 
 Depreciation and  
  amortization                    257,862                0  
 Amortization of  
  prepaid and accrued 
   royalties- net                 144,535                0  
 Minority interest  
  in earnings of the 
  Providence Project              129,582                0  
 Income from 
  unconsolidated 
  hydroelectric 
  projects                       (227,197)               0  
 Changes in assets 
  and liabilities, 
  net of effects of 
  Providence Project 
  purchase: 
   Decrease (increase) 
    in accounts receiv- 
    able, trade                   505,742          (16,972) 
   Decrease (increase) 
    in other 
    receivables                    21,783                0  
   Decrease in 
   customer escrow  
   fund                                 0                0  
   Increase (decrease) 
    in accounts payable 
    and accrued expenses          (23,169)        (130,451) 
   Increase (decrease) 
    in due from 
    affiliate                     291,435                0  
   Other- net                      (3,721)               0  
   Total adjustments            1,096,852         (147,423) 
   Net cash provided 
    by (used in) 
    operating 
    activities                  1,453,072         (331,802) 
 
Cash used in 
 investing 
 activities: 
  Investment in 
   the Providence 
   Project                              0       (5,250,000) 
  Investment in 
   hydroelectric 
   projects                       (58,374)               0  
  Capital 
   expenditures                  (966,074)               0  
  Deferred due 
   diligence costs                (63,272)               0  
  Purchase of 
   electric 
   generating 
   equipment                       (6,400)               0  
    Net cash used 
    in investing 
    activities                 (1,094,120)      (5,250,000) 
 
Cash provided by 
 (used in) financing 
 activities: 
  Proceeds from 
   shareholders' 
   contributions                        0        7,951,685  
  Selling commissions 
   and offering 
   costs paid                           0       (2,359,206) 
  Cash distributions 
   to shareholders               (959,567)        (291,000) 
  Payments to reduce 
   long-term debt                (129,762)               0  
  Distribution to 
   minority interest             (320,176)               0  
    Net cash provided 
     by financing 
     activities                (1,409,505)       7,660,685  
 
Net increase (decrease) 
 in cash and cash 
 equivalents                   (1,050,553)       2,078,883  
Cash and cash 
 equivalents, 
 beginning of period           22,685,829       12,998,463  
Cash and cash 
 equivalents, 
 end of period               $ 21,635,276     $ 15,077,346  
 
<FN>  
See Accompanying Notes to Financial Statements  
</TABLE>  
<PAGE>  
  
RIDGEWOOD ELECTRIC POWER TRUST IV  
NOTES TO FINANCIAL STATEMENTS                              
  
1.  Organization and Purpose  
  
Nature of Business  
 
Ridgewood Electric Power Trust IV (the "Trust") was formed as a  
Delaware business trust in September 1994, by Ridgewood Energy  
Holding Corporation acting as the Corporate Trustee.  The managing  
shareholder of the Trust is Ridgewood Power Corporation.  The  
Trust began offering shares on February 6, 1995. The Trust  
discontinued its offering of shares in March 1995 and commenced  
operations in May 1995.  
  
The Trust has been organized to invest in independent power  
generation facilities and in the development of these facilities.   
These independent power generation facilities will include  
cogeneration facilities, which produce both electricity and heat  
energy and other power plants that use various fuel sources  
(except nuclear).  The power plants will sell electricity and/or  
heat energy to utilities and industrial users under long-term  
contracts.  
  
Business Development Company Election  
 
The Trust made an election to be treated as a Business Development  
Company ("BDC") under the Investment Company Act of 1940 ("the  
1940 Act").  On January 24, 1995, the Trust notified the  
Securities Exchange Commission of such election and registered its  
shares under the Securities Exchange Act of 1934 ("the 1934 Act").   
On March 24, 1995, the election and registration became effective.  
  
On September 9, 1996, through a proxy solicitation the Trust  
requested investor consent to end the BDC status.  As of October  
2, 1996, more than 50% of the investors shares consented to the  
elimination of the BDC status.  Accordingly, the Trust is no  
longer an investment company under the 1940 Act.  
  
2.  Summary Of Significant Accounting Policies  
  
Interim Financials  
 
The consolidated financial statements for the quarters ended March  
31, 1997 and 1996, included herein have been prepared by the Trust  
without audit pursuant to the rules and regulations of the  
Securities and Exchange Commission.  Accordingly, these statements  
reflect all adjustments (consisting only of normal recurring  
entries) which are, in the opinion of management, necessary for a  
fair statement of the financial results for the interim periods.   
Certain information and notes normally included in financial  
statements prepared in accordance with generally accepted  
accounting principles have been condensed or omitted pursuant to  
such rules and regulations, although the Trust believes that the  
disclosures are adequate to make the information presented not  
misleading.  These financial statements should be read in  
conjunction with the financial statements and the notes thereto  
included in the Trust's Annual Report on Form 10-K for the year  
ended December 31, 1996 (Form 10-K).  
  
Accounting Changes  
 
As a BDC under the 1940 Act, the Trust utilized generally accepted  
accounting principles for investment companies.  As a result of  
the elimination of the BDC status, the Trust now utilizes  
generally accepted accounting principles for operating companies.   
In accordance with the generally accepted accounting principles  
for BDCs, investments in power generation projects were stated at  
fair value in previously issued financial statements.  As a result  
of the elimination of the BDC status, consolidation and  
equity method accounting principles now  apply to the  
  
<PAGE> 
 
Ridgewood Electric Power Trust IV  
Notes to the Consolidated Financial Statements  
  
accounting for investments.  Accordingly, the financial data for  
all prior periods presented has been restated to reflect the use  
of consolidation and equity method accounting principles.  
  
Principles of Consolidation and Accounting for Investment in Power  
Generation Projects  
 
The consolidated financial statements include the accounts of the  
Trust and affiliates owned more than 50%.  All material  
intercompany transactions have been eliminated.  
  
The Trust uses the equity method of accounting for its investment  
in an affiliate which is 50% owned because the Trust has the  
ability to exercise significant influence over the operating and  
financial policies of the affiliate but does not control the  
affiliate.  The Trust's share of the earnings of the affiliate is  
included in consolidated net income.  
  
Use of Estimates  
 
The preparation of consolidated financial statements in conformity  
with generally accepted accounting principles requires management  
to make estimates and assumptions that affect the reported amounts  
of assets and liabilities, and disclosure of contingent assets and  
liabilities at the date of the financial statements and the  
reported amounts of revenues and expenses during the reporting  
period.  Actual results could differ from the estimates.  
  
Cash and Cash Equivalents  
 
The Trust considers all highly liquid investments with  maturities  
when purchased of three months or less as cash and cash  
equivalents.  
  
Plant and Equipment  
 
Plant and equipment, consisting principally of electrical  
generating equipment, is stated at cost.  Renewals and betterments  
that increase the useful lives of the assets are capitalized.   
Repair and maintenance expenditures that increase the efficiency  
of the assets are expensed as incurred.  
  
Depreciation is recorded using the straight-line method over the  
useful lives of the assets, which is 10 to 20 years.  For the  
period ended March 31, 1997 and March 31, 1996, the Trust recorded  
depreciation expense of $120,094 and $0, respectively.  
  
Intangible Asset  
 
A portion of the purchase price of the Providence Project was  
assigned to the Electric Power Sales Contract and is being  
amortized over 15 years on a straight-line basis.  For the period  
ended March 31, 1997 and March 31, 1996, the Trust recorded  
amortization expense of $137,768 and $0, respectively.  
  
Electric Power Equipment Held for Resale  
 
The Trust owns certain used electric power equipment that is  
stated at cost, which approximates estimated net realizable value.  
  
Revenue Recognition  
 
Power generation revenue is recognized based on power delivered at  
rates stipulated in the power sales contract.  Interest and  
dividend income is recorded when earned.  
  
Income Taxes  
 
No provision is made for income taxes in the accompanying  
financial statements as the income or losses of the Trust are  
passed through and included in the tax returns of the individual  
shareholders of the Trusts.  
  
<PAGE> 
 
Ridgewood Electric Power Trust IV  
Notes to the Consolidated Financial Statements  
  
Offering Costs 
 
Costs associated with offering Trust shares (selling  
commissions, distribution and offering costs) are reflected as a  
reduction of the shareholders' capital contributions.    
  
Due diligence costs relating to potential power projects  
 
Costs relating to the due diligence performed on potential power  
project investments are initially deferred, until such time as the  
Trust determines whether or not it will make an investment in the  
respective project.  Costs relating to completed projects are  
capitalized and costs relating to rejected projects are expensed,  
at the time of rejection.  
  
3.  Acquisitions  
  
The Trust has made the following investments in power generation  
projects and electric power equipment:  
  
 
                       Nature of  Ownership  March 31,   December 31, 
Project Name           Ownership  Interest    1997             1996 
                                             
Providence Project   Partnerships   64.3%   $12,850,000   $12,850,000 
Maine Hydro Project  Partnerships   50.0%     7,092,082     6,806,511 
California Pumping    Direct 
 Project              Ownership    100.0%       780,834       697,730 
Electric Power        Direct  
 Equipment            Ownership    100.0%       461,582       455,182 
 
Providence Project 
In 1996, Ridgewood Providence Power Partners, L.P. was formed as a  
Delaware limited partnership ("Providence Power").  The Trust  
invested $12,721,500 and owns a 64.3% limited partnership interest  
in Providence Power.  In addition, Ridgewood Providence Power  
Corporation, was formed as a Delaware corporation ("RPPCorp.").   
The Trust invested $128,500 and owns 64.3% of the outstanding  
common stock of RPPCorp., which is the sole general partner of   
Providence Power.  
 
On April 16, 1996, Providence Power purchased substantially all of  
the net assets of Northeastern Landfill Power Joint Venture.  The  
assets acquired include a 12.3 megawatt capacity electrical  
generating station, located at the Central Landfill in Johnston,  
Rhode Island (the "Providence Project").  The Providence Project  
includes eight reciprocating electric generator engines, which are  
fueled by methane gas produced and collected from the landfill.   
The electricity generated is sold to New England Power Corporation  
under a long-term contract.  The purchase price was $15,533,021  
cash, including transaction costs and repayment of $3,000,000 of  
principal on the senior secured non-recourse notes payable.  In  
addition, Providence Power assumed the obligation to repay the  
remaining principal outstanding of $6,310,404 on the senior  
secured non-recourse notes payable. 
 
Through ownership in RPPCorp. and Providence Power, the Trust owns  
64.3% of the Providence Project.  The remaining 35.7% is owned by  
Ridgewood Electric Power Trust III ("Trust III").  Ridgewood Power  
Corporation is the managing partner of the Trust and Trust III. 
 
<PAGE> 
 
Ridgewood Electric Power Trust IV 
Notes to the Consolidated Financial Statements	 
 
 
The acquisition of the Providence Project was accounted for as a  
purchase as of April 16, 1996, and the results of operations of  
the Providence Project have been included in the Trust's  
Consolidated Financial Statements since that date.  The purchase  
price was allocated to the net assets acquired, based on their  
respective fair values.  A portion of the purchase price  
($8,266,096) was allocated to the Electric Power Sales Contract  
and is being amortized over 15 years. 
 
The following unaudited pro forma information has been prepared  
assuming the Providence Project was acquired as of the beginning  
of the periods presented.  The pro forma information is presented  
for information purposes only and is not necessarily indicative of  
what would have occurred if the formation and acquisition had been  
made as of those dates.  In addition, the pro forma information is  
not intended to be a projection of future results and does not  
reflect capital equipment additions and changes in operating  
management which have been made at the Providence Project  
subsequent to the acquisition. 
 
                                       Actual        ProForma 
                                      March 31,      March 31, 
                                        1997           1996 
 
Net sales                             $1,679,485    $1,212,331 
Income from Operations                   403,341       259,625 
Net Income                               363,121        24,995 
 
 
Maine Hydro Projects 
 
On September 5, 1996, Ridgewood Maine Hydro Partners, L.P. was  
formed as a Delaware limited partnership ("Ridgewood Hydro L.P.").   
The Trust made investments and advances of $6,740,570 and owns a  
50% limited partnership interest in Ridgewood Hydro L.P.  In  
addition, Ridgewood Maine Hydro Corporation, was formed as a  
Delaware corporation ("RMHCorp.").  The Trust invested $65,941 and  
owns 50% of the outstanding common stock of RMHCorp., which is the  
sole general partner of Ridgewood Hydro L.P.  
 
On December 23, 1996, in a merger transaction, Ridgewood Hydro  
L.P. acquired 14 hydroelectric projects, located in Maine (the  
"Maine Hydro Projects"), from a subsidiary of Consolidated Hydro,  
Inc.  The assets acquired include a total of 11.3 megawatts of  
electrical generating capacity.  The electricity generated is sold  
to Central Maine Power Company and Bangor Hydro Company under   
long-term contracts.  The purchase price was $12,256,306 cash,  
including transaction costs.  In addition, Ridgewood Hydro L.P.  
assumed a long-term lease obligation of $1,017,209.  The Trust's  
50% share of the cash consideration paid was $6,128,153. The  
remaining 50% was paid by Ridgewood Electric Power Trust V ("Trust  
V").  Ridgewood Power Corporation is the managing partner of the  
Trust and Trust V. 
 
The Trust's 50% investment in the Maine Hydro Projects is  
accounted for under the equity method of accounting.  The Trust's  
equity in the earnings of the Maine Hydro Projects have been  
included in the Consolidated Financial Statements since December  
23, 1996. 
 
The Maine Hydro Projects are operated by a subsidiary of  
Consolidated Hydro, Inc., under an Operation, Maintenance and  
Administrative Agreement.  The annual operator's fee is  
$307,500,adjusted for inflation, plus an annual incentive fee  
equal to 50% of the net cash flow in excess of a target amount   
The agreement has a five year term and can be renewed for two  
additional five year terms by mutual consent. 
 
<PAGE> 
 
Ridgewood Electric Power Trust IV 
Notes to the Consolidated Financial Statements 
 
 
Summarized financial information for the Maine Hydro Projects are  
as follows: 
 
Balance Sheet Information at March 31, 1997 
 
Current assets   $  1,062,717        Due to Trust IV  $     43,027 
Electric power                       Other current  
 sales contract    12,416,194         liabilities          238,917 
Other non-current                    Non-current  
 assets               800,000         liabilities        1,004,679 
                                     Partners' 
                                      equity            12,992,288 
Total assets      $14,278,911        Total liabilities 
                                      and equity       $14,278,911 
 
 
Statement of Operations Information for the period ending March  
31, 1997 
 
Revenue                            $1,441,852 
Operating expenses                    438,780 
Depreciation & Amortization           511,818 
Other Income/(Expense)                (36,860) 
            Net income            $   454,394 
 
California Pumping Project 
 
On December 31, 1995, the Trust acquired a package of natural gas  
fueled diesel engines which drive deep irrigation well pumps in  
Ventura County, California from an affiliated trust.  The engines'  
shaft horsepower-hours are sold to the operator at a discount from  
the equivalent kilowatt hours of electricity.  The Trust receives  
a distribution of $0.02 per equivalent kilowatt up to 3,000  
running hours per year and $0.01 per equivalent kilowatt for each  
additional running hour per year. The operator pays for fuel,  
maintenance, repair and replacement. The initial acquisition  
included 11 engines with a rated capacity of 1.2 megawatts.  The  
purchase price of $353,619 was paid in 1996.  During 1996, the  
Trust acquired an additional 9 engines with a rated capacity of  
1.2 megawatts at a purchase price of $344,111.  During the three  
months ended March 31, 1997 the Trust invested additional funds of  
$83,104 in the California Pumping projects.  At March 31, 1997,  
the Trusts total investment in the California Pumping Project was  
$780,834. 
 
4.  Electric Power Equipment Held for Resale 
 
The Trust purchased, from an affiliated entity, various used  
electric power generation equipment to be held for resale or, in  
the event a buyer is not found, for use in potential power  
generation projects.  The equipment is held in storage.  At March  
31, 1997 and December 31, 1996, the cost of such equipment was  
$461,582 and $455,182, respectively. 
 
5.  Long-term Debt 
 
Following is a summary of long-term debt at March 31, 1997: 
 
Senior secured non-recourse notes payable       $5,848,689 
Less - Current maturity                            538,191 
Total Long-term Debt                            $5,310,498 
 
<PAGE> 
 
Ridgewood Electric Power Trust IV 
Notes to the Consolidated Financial Statements 
 
 
The senior secured non-recourse notes are due in monthly  
installments of $90,738 including interest at 9.6%.  Final payment  
is due on October 15, 2004.  The notes also provide for additional  
interest equal to 5% of the annual net cash flow of the Providence  
Project, as defined.  No additional interest was due for the eight  
and one half months ending December 31, 1996.  The notes are  
secured by a leasehold mortgage on Providence Power's landfill  
lease agreements and substantially all of the assets of Providence  
Power.  In addition to the required monthly payments, mandatory  
prepayments may be required if certain events occur.  The loan  
agreement also provides for a cash funded debt service reserve and  
maintenance reserve.  At March 31, 1997, the cash balance in these  
reserve accounts were $575,441 and $394,070, respectively.   
Additions and reductions to these reserve accounts are defined in  
the loan agreement.  As of January 31, 1997, Providence Power's  
obligations to maintain a cash balance in the maintenance reserve  
account have terminated and the cash balance in the reserve  
account will be released to Providence Power.  The loan agreement  
contains various covenants, including the maintenance of a  
specified debt service ratio. 
Scheduled repayments of long-term debt principal for the next five  
years are as follows: 
 
 Year Ended 
December 31,       Repayment 
       1997         $538,191 
       1998          592,193 
       1999          651,613 
       2000          716,995 
       2001          788,937 
 
 
6.  Fair Value of Financial Instruments 
 
At March 31, 1997, the carrying value of the Trust's cash, debt  
service and maintenance reserves and notes payable approximates  
their fair value.  The fair value of the long-term debt,  
calculated using current rates for loans with similar maturities,  
also approximates its carrying value. 
 
7.  Electric Power Sales Contracts 
 
Providence Power is committed to sell all of the electricity it  
produces to New England Power Company ("NEP") for prices as  
specified in the Power Purchase Agreement.  The prices are  
adjusted annually for changes in the Consumer Price Index, as  
defined.  The NEP agreement expires in the year 2020 and can be  
terminated by either party under certain conditions in 2010.  At  
the time of the acquisition of the Providence Project, Providence  
Power was required under the NEP agreement to maintain in an  
escrow account cash to secure payment of the aggregate  
differential to NEP in the event of default.  At April 16, 1996,  
the aggregate differential amounted to $1,065,989.  In October  
1996, the aggregate differential decreased to zero and the cash  
held in escrow was released to Providence Power.  For three months  
ended March 31, 1997 and March 31, 1996, sales revenue under the  
NEP Power Purchase Agreement amounted to $1,679,485 and $0,  
respectively. 
 
The Maine Hydro Projects qualify as small power production  
facilities under the Public Utility Regulatory Policies Act  
("PURPA").  PURPA requires that each electric utility company,  
operating at the location of a small power production facility, as  
defined, purchase the electricity generated by such facility at a  
specified or negotiated price.  The Maine Hydro Projects sell  
substantially all of their electrical output to two public utility  
companies, Central Maine Power Company ("CMP") and Bangor Hydro- 
Electric Company ("BHC"), under long-term power purchase  
agreements.  Eleven of  the  twelve  power  purchase agreements   
with  CMP  expire  in  
 
<PAGE> 
 
Ridgewood Electric Power Trust IV 
Notes to the Consolidated Financial Statements 
 
 
December 2008 and are renewable for an additional five year  
period.  The twelfth power purchase agreement with CMP expires in  
December 2007 with CMP having the option to extend the contract  
three more five-year periods.  The two power purchase agreements  
with BHC expire December 2014 and February 2017. 
 
8.  Landfill Lease and Sublease  
 
Providence Power leases the Central Landfill, located in Johnston,  
Rhode Island from Rhode Island Solid Waste Management Corporation  
("RISWMC").  The lease expires in 2020 and can be extended for an  
additional 10 years.  The lease requires Providence Power to pay a  
royalty equal to 15% of net revenues, as defined, for the first 15  
years of the lease.  For subsequent years, the royalty is 15% of  
net revenues for each month in which the average daily kilowatt  
hour production is less than 180,000 and 18% of net revenues for  
each month in which the average 
daily kilowatt hour production exceeds 180,000.  At the time of  
the acquisition of the Providence Project, Providence Power made a  
royalty prepayment to RISWMC of $925,000.  For three months ended  
March 31, 1997 and March 31, 1996, royalty expense relating to the  
RISWMC lease amounted to $238,769 and $0, respectively. 
 
Providence Power subleases the Central Landfill to Central Gas  
Limited Partnership ("Gasco"). Gasco operates and maintains the  
landfill gas collection system and supplies landfill gas to the  
Providence Project.  The sublease agreement is effective through  
December 31, 2010 and provides for the following: 
 
1.  Sublease Income - Gasco is to pay Providence Power an annual  
amount equal to the product of $30,000 times the assumed output  
capacity of each engine generator set in megawatts installed  
and operating by the joint venture.  Income recorded under the  
sublease amounted to $92,250 and $0, respectively for the three  
months ended March 31, 1997 and March 31, 1996.. 
 
2.  Fuel Expense - Providence Power agreed to purchase all the  
landfill gas produced by Gasco and pay on a monthly basis  
$.01183 per kilowatt hour for the first 4,000,000 kilowatt  
hours, $.005 per kilowatt hour for kilowatt hours in excess of  
4,000,000 and $.05 per million BTU's of excess landfill gas.   
The price is adjusted annually for changes in the Consumer  
Price Index, as defined.  Purchases from Gasco for the three  
months ended March 31, 1997 and March 31, 1996 amounted to  
$214,120 and $0, respectively. 
 
9.  Transactions With Managing Shareholder and Affiliates 
 
The Trust also pays to the managing shareholder a distribution and  
offering fee up to 6% of each capital contribution made to the  
Trust.  This fee is intended to cover legal, accounting,  
consulting, filing, printing, distribution, selling and closing  
costs for the offering of  the Trust.  For the period ended March  
31, 1997 and March 31, 1996, the Trust paid fees for these  
services to the managing shareholder of $0 and $613,860,  
respectively.  These fees are recorded as a reduction in the  
shareholders' capital contribution. 
 
<PAGE> 
 
Ridgewood Electric Power Trust IV 
         Notes to the Consolidated Financial Statements 
 
 
The Trust pays to the managing shareholder an investment fee up to   
2% of each capital contribution made to the Trust.  The fee is  
payable to the managing shareholder for its services in  
investigating and evaluating investment opportunities and  
effecting transactions for investing the capital of the Trust. For  
the period ended March 31, 1997 and March 31, 1996, the Trust paid  
investment fees to the managing shareholder of $400 and $181,295,  
respectively. 
 
The Trust entered into a management agreement with the managing  
shareholder under which the managing shareholder renders certain  
management, administrative and advisory services and provides  
office space and other facilities to the Trust. As compensation to  
the managing shareholder, the Trust pays the managing shareholder  
an annual management fee equal to 3% of the net asset value of the  
Trust payable monthly upon the closing of the Trust.  For the  
period ended March 31, 1997 and March 31, 1996, the Trust paid  
management fees to the managing shareholder of $292,980 and  
$46,970, respectively. 
 
Under the Declaration of Trust, the managing shareholder is  
entitled to receive each year 1% of all distributions made by the  
Trust (other than those derived from the disposition of Trust  
property) until the shareholders have been distributed each year  
an amount equal to 14% of their equity contribution.  Thereafter,  
the managing shareholder is entitled to receive 20% of the. 
distributions for the remainder of the year.  The managing  
shareholder is entitled to receive 1% of the proceeds from  
dispositions of Trust properties until the shareholders have  
received cumulative distributions equal to their original  
investment ("Payout").  In all cases, after Payout the managing  
shareholder is entitled to receive 20% of all remaining  
distributions of the Trust 
 
Where permitted, in the event the managing shareholder or an  
affiliate performs brokering services in respect of an investment  
acquisition or disposition opportunity for the Trust, the managing  
shareholder or such affiliate may charge the Trust a brokerage  
fee.  Such fee may not exceed 2% of the gross proceeds of any such  
acquisition or disposition.  No such fees have been paid through  
March 31, 1997. 
 
The managing shareholder purchased one share of the Trust for  
$83,000.  For the year ended March 31, 1997, commissions and  
placement fees of $263,883 were earned by Ridgewood Securities  
Corporation, an affiliate of the managing shareholder. 
 
Under an Operating Agreement with the Trust, Ridgewood Power  
Management Corporation ("Ridgewood Management"), an entity related  
to the managing shareholder through common ownership, provides  
management, purchasing, engineering, planning and administrative  
services to the Trust's power generation projects.  Ridgewood  
Management charges the projects at its cost for these services and  
for the allocable amount of certain overhead items.  Allocations  
of costs are on the basis of identifiable direct costs, time  
records or in proportion to amount invested in projects managed by  
Ridgewood Management.  For the period ended March 31, 1997 and  
March 31, 1996, Ridgewood Management charged Providence Power  
$131,289 and $0, respectively, for overhead items allocated in  
proportion to the amount invested in projects managed, and charged  
Providence Power for all of the remaining direct operating and  
non-operating expenses incurred during the period. 
 
<PAGE> 
  
RIDGEWOOD ELECTRIC POWER TRUST IV  
MANAGEMENT'S DISCUSSION AND    
ANALYSIS OF FINANCIAL CONDITION AND    
RESULTS OF OPERATIONS    
  
This Quarterly Report on Form 10-Q, like some other statements made by 
the Trust from time to time, has forward-looking statements.  These   
statements discuss business trends and other matters relating to the   
Trust's future results and the business climate.  In order to make these
statements, the Trust has had to make assumptions as to the future.  It 
has also had to make estimates in some cases about events that have 
already happened, and to rely on data that may be found to be inaccurate 
at a later time.    

Because these forward-looking statements are based on assumptions, 
estimates and changeable data, and because any attempt to predict the 
future is subject to other errors, what happens to the Trust in the 
future may be materially different from the Trust's forward-looking 
statements.    
  
The Trust therefore warns readers of this document that they should not 
rely on these forward-looking statements without considering all of the 
things that could make them inaccurate.  The Trust's other filings with 
the Securities and Exchange Commission and its Confidential Memorandum 
discuss many (but not all) of the risks and uncertainties that might 
affect these forward-looking statements.    
  
Some of these are changes in political and economic conditions, federal 
or state regulatory structures, government taxation, spending and 
budgetary policies, government mandates, demand for electricity and 
thermal energy, the ability of customers to pay for energy received, 
supplies of fuel and prices of fuels, operational status of plant, 
mechanical breakdowns, availability of labor and the willingness of 
electric utilities to perform existing power purchase agreements in good 
faith.    
  
By making these statements now, the Trust is not making any commitment 
to revise these forward-looking statements to reflect events that happen 
after the date of this document or to reflect unanticipated future 
events.  
  
Dollar amounts in this discussion are generally rounded to the nearest   
$1,000.  
  
  
Three months ended March 31, 1997 versus three months ended   
March 31, 1996   
  
Results of Operations    
    
The consolidated financial statements include the accounts   
of the Trust and the limited partnerships owning the   
Providence and California Pumping Projects.  The Trust uses   
the equity method of accounting for its investment in the   
Maine Hydro Projects, which are 50% owned by the Trust.  The   
Trust's share of the earnings and cash flow earned by the   
Maine Hydro Projects is seasonal, peaking in the second and   
fourth quarters of the year (when high river flows generally   
produce a greater amount of electricity) and falling in the   
first and third quarters, when river flows are lower and   
equipment maintenance is performed.    
  
For the quarter ended March 31, 1997, the Trust's net income   
increased to $356,000 from a net loss of $184,000 for the   
same quarter in 1996.  The current quarter's earnings   
include equity in net income from the Maine Hydro Projects   
of $227,000, earnings, net of minority interest, from the   
Providence Project of $233,000, a minor contribution to   
earnings from the California Pumping Project of $3,000,   
interest and dividend income at the Trust level of $215,000,   
less Trust-level expenses of $322,000.    
  
The Trust's only investment in the first quarter of 1996 was   
the California Pumping Project and the Trust had significant   
investment fee expenses relating to the share offering.  The   
1996 first quarter reflects expenses for investment fees,   
management fees and general and administrative expenses of   
$181,000, $47,000 and $20,000, respectively.  
  
Liquidity and Capital Resources    
    
At March 31, 1997, the Trust had $21,635,000 of cash   
available for investment in Projects.  During the first   
quarter of 1997, cash flow provided by operation activities   
amounted to $1,453,000, of which $960,000 was distributed to   
shareholders of the Trust and $320,000 was distributed to   
the minority interest in the Providence Project.  
  
During the first quarter of 1997, capital expenditures   
amounted to $966,000, most of which related to the   
installation of a ninth generator engine at the Providence   
Project.    
  
The Trust is in the process of obtaining a $500,000 line of credit, 
which it plans to have in place in the third quarter of 1997.  The line 
of credit is being obtained in order to allow the Trust to operate using 
a minimum amount of cash, maximize the amount invested in Projects and 
maximize cash distributions to shareholders.    
  
The Trust's policy is to distribute as much cash as is prudent to 
shareholders.  Accordingly, the Trust has not found it necessary to 
retain a material amount of working capital.  The amount of working 
capital retained will be further reduced by obtaining a line of credit.  
  
  
  
Certain Industry Trends  
  
The industry trend toward deregulation of the electric power   
generating and transmission industries has accelerated after   
the adoption of Order 888 by the Federal Energy Regulatory   
Commission ("FERC") on April 24, 1996.  A number of major   
states, including California, have adopted proposals to   
allow "retail wheeling," which would allow any qualified   
generator to use utility transmission and distribution   
networks to sell electricity directly to utility customers.    
Other states, such as Massachusetts, Maine and Rhode Island,   
are preparing their own initiatives.  As a result,   
profound changes in the industry are occurring, marked by   
consolidations of utilities, large scale spin-offs or sales   
of generating capacity, reorganizations of power pools and   
transmission entities, and attempts by electric utilities to   
recover stranded costs and alter power purchase contracts   
with independent power producers such as the Trust.  
  
It is too early to predict the effects of these trends and   
others on the Trust's business.  A critical issue for the   
Trust, however, is whether any action will be taken to   
modify its existing power purchase contracts or to shift   
costs to independent power producers.  To date, neither FERC   
nor state authorities have adopted   
measures that would impair power purchase contracts and the   
Trust is not aware of any other such action by regulatory   
authorities in states where it does business.    
  
It must be remembered, however, that legislative and   
regulatory action is unpredictable and that at any time   
federal or state legislatures or regulators could adopt   
measures that would be materially adverse to the Trust's   
business.  Further, volatile market conditions could   
adversely affect the Trust's operations and the actions of   
other industry participants, such as electric utilities,   
which in turn could affect the Trust.   
  
    
  
PART II - OTHER INFORMATION  
    
Item #6 Exhibits and Reports on Form 8-K    
    
        A. Exhibits    
    
           Exhibit 27. Financial Data Schedule  
    
        B. Reports on Form 8-K    
    
           An Amendment No. 1 to Current Report on Form 8-K,   
was filed during this quarter for the purpose of including audited 
financial statements for the Maine Hydro Projects.  
                                    
   
  
SIGNATURES    
    
    
     Pursuant to the requirements of the Securities Exchange   
Act of 1934, the registrant has duly cause this report to be   
signed on its behalf by the undersigned thereunto duly   
authorized.    
    
    
    
    
                           RIDGEWOOD ELECTRIC POWER TRUST IV   
                                   Registrant    
    
    
Date:  May 14, 1997      By /s/ Martin V. Quinn   
                                Martin V. Quinn  
                                   Senior Vice President and  
                                   Chief Financial Officer    
                                   (signing on behalf of the  
                                   Registrant and as  
                                   principal financial  
                                   officer)