UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1996
Commission file Number 0-24240
RIDGEWOOD ELECTRIC POWER TRUST I
(Exact name of registrant as specified in its charter.)
Delaware, U.S.A. 22-3105824
(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 [ ]
PART I. - FINANCIAL INFORMATION
RIDGEWOOD ELECTRIC POWER TRUST I
BALANCE SHEETS
(Unaudited)
June 30, December 31,
1996 1995
Assets
Cash $ 625 $ 5,643
Investments in power
project partnerships 7,207,846 7,207,846
Due from affiliates 473,127 317,817
Other assets 0 0
Total assets $ 7,681,598 $ 7,531,306
Liabilities and Share-
holders' Equity
Accounts payable and
accrued expenses $ 31,312 $ 44,812
Due to affiliates 939,867 570,057
971,179 614,869
Shareholders' equity
(105.5 shares issued
and outstanding) 6,733,473 6,937,431
Managing shareholder's
accumulated deficit (23,054) (20,994)
Total shareholders' equity 6,710,419 6,916,437
Total liabilities and
shareholders' equity $ 7,681,598 $ 7,531,306
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
AND JUNE 30, 1995
(Unaudited)
Six months Quarter Six months
Quarter
ended June 30, ended ended June 30, ended
June 30,
1996 June 30, 1996 1995
1995
______________ ______________
___________
Revenue:
Income from project
partnerships $ 239,501 $ 222,001 $ 301,052
189,375
Interest income 3 3 60,116
29,377
Total revenue 239,504 222,004 361,168
218,752
Expenses:
Trustee fees 5,000 2,500 0
0
Management fee 14,418 0 43,248
21,624
Administrative and
other expenses 34,679 26,656 3,071
(479)
Total expenses 54,097 29,156 46,319
21,145
Net income (loss) $ 185,407 $ 192,848 $ 314,849
$197,607
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
AND JUNE 30, 1995
(Unaudited)
Six months Quarter Six months
Quarter
ended June 30, ended June 30, ended June 30,
ended June 30,
1996 1996 1995
1995
____________ ____________ _____________
______________
Cash flows from operating
activities:
Net income (loss) $ 185,407 $192,848 $ 314,849
$197,607
Adjustments to
reconcile net income
to cash provided (used)
in operating activities:
Investments in power
projects and partnerships 0 0 (267,563)
(186,598)
Changes in assets &
liabilities:
Decrease (increase) in
interest receivable 0 0 (59,187)
(59,187)
Decrease (increase) in
due from affiliates (155,310) 0 0
30,000
Increase (decrease) in
accounts payable and
accrued expenses (13,500) (14,000) (110,487)
(17,010)
Increase in due
to affiliates 369,810 17,500 118,479
118,479
Total adjustments 201,000 3,500 (318,758)
(114,316)
Net cash provided (used)
by operating activities 386,407 196,348 (3,909)
83,291
Cash provided by (used in)
financing activities:
Cash distributions to
Shareholders (391,425) (197,584) (236,281)
(142,020)
Net cash used in
financing activities (391,425) (197,584) (236,281)
(142,020)
Net increase (decrease) in
cash and cash equivalents ( 5,018) (1,236) ( 240,190)
(58,729)
Cash - Beginning of period 5,643 1,861 240,190
58,729
Cash - End of period $ 625 625 $ 0
$ 0
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
NOTES TO FINANCIAL STATEMENTS
1. Organization and Purpose
Nature of business
Ridgewood Energy Electric Power, L.P. (the "Partnership")
was formed as a Delaware limited partnership on March 6,
1991 by Ridgewood Power Corporation acting as the general
partner. On April 30, 1991, Beale Lynch Power Partners Inc.
was admitted as co-general partner of the Partnership.
The partnership began offering limited partnership units in
the Partnership on May 1, 1991. The Partnership commenced
operations on September 16, 1991 and discontinued its
offering of units on March 31, 1992.
On June 15, 1994, with the approval of the partners, the
Partnership merged all of its assets and liabilities into a
newly formed trust, called Ridgewood Electric Power Trust I
(the "Trust"). Effective July 25, 1994, the Trust elected
to be treated as a "Business Development Company" ("BDC")
under the Investment Company Act of 1940 and registered its
shares under the Securities Act of 1934. In connection with
this transaction, the Trust issued 105.5 shares in exchange
for outstanding Partnership units. Ridgewood Power
Corporation is the sole managing shareholder.
The Trust has been organized to invest in independent power
generation facilities and in the development of these
facilities. These independent power generation facilities
include small power production facilities which produce
electricity from waste oil, landfill gas and water. The
power plants sell electricity to utilities under long-term
contracts.
RIDGEWOOD ELECTRIC POWER TRUST I
NOTES TO FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies
Investments in project development and power generation
limited partnerships
The Trust holds partnership interests in power generating
limited partnerships which are stated at fair value. Due to
the illiquidity of the investments, the fair values of the
investments are assumed to equal cost unless current
available information provides a basis for adjusting the
value of the investments.
Fair values as of
6/30/96 12/31/95
Power generation limited
partnerships:
Stillwater Hydro Partners, L.P. $1,000,000 $1,000,000
RW Power Partners, L.P. 3,527,923 3,527,923
Brea Power Partners, L.P. 2,679,923 3,103,479
Revenue recognition
Income from investments is recorded when received. Interest
and dividend income are recorded as earned.
Offering costs
Effective January 1, 1995, costs associated with offering
Trust shares (selling commissions, distribution and offering
costs) are reflected as a reduction of the shareholders'
capital contributions. Previously issued financial
statements reflected such offering costs as an expense.
Comparative accounts have been restated to reflect the
change. For the periods presented herein, net income and
total shareholders' equity are unaffected by the
restatement.
Cash and cash equivalents
The Trust considers monies invested in a U.S. Treasury Bills
Fund with daily liquidation privileges to be a cash
equivalent.
Due diligence costs relating to potential power projects
Costs relating to the due diligence performed on potential
power projects are initially deferred, until such time as
the Trust determines whether or not it will make an
investment in the respective project. Those costs relating
to an accepted project are capitalized and those costs
relating to a rejected project are expensed at that time.
RIDGEWOOD ELECTRIC POWER TRUST I
NOTES TO FINANCIAL STATEMENTS
Income taxes
No provision is made for income taxes in the accompanying
financial statements as the income or loss of the Trust is
included in the tax returns of the individual shareholders.
Reclassification
Certain items in previously issued financial statements have
been reclassified for comparative purposes.
RIDGEWOOD ELECTRIC POWER TRUST I
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Six months ended June 30, 1996 versus six months ended
June 30, 1995
Results of Operations
The Trust received $240,000 of distributions from the Olinda
and South Boston Projects in the first half of 1996, as
compared to $301,000 of distributions in the corresponding
period of 1995. The 20.4% decrease is in part a consequence
of reduced distributions from the South Boston Project,
where cash flow is being reinvested in the construction and
start-up of a waste oil treatment facility and was applied
in part to completion of repairs to a damaged engine.
Distributions from the Olinda Project in California were
substantially reduced from the 1995 level because of
seasonal factors. The distributions in 1995 from that
Project were derived in large part from third quarter 1994
cash flow which was received by the Project in early 1995.
In 1995, a larger portion of cash flow
earned in the third quarter of 1995 by that Project was
distributed to the Trust and by the Trust to Investors
in 1995, resulting in a smaller first quarter 1996
distribution. It should be noted that the bulk of this
Project's income is earned during the third quarter because
of summer peak demand for electricity.
Total Trust expenses increased 16.8% ($8,000) from the first
six months of 1995 to the 1996 period. The major element of
the increase was a $23,000 increase in administrative and
other expense, reflecting increases in auditing and tax
return preparation expenses. In response to the Trust's
need for cash,beginning in April 1996 the Managing
Shareholder waived its management fee of 2.5% of assets per
year, resulting in a $14,000 saving in the second quarter of
1996. The Managing Shareholder is not obligated to continue
this waiver but currently intends to do so.
The Trust does not consolidate its financial statements
with those of the Projects it owns and does not include the
Projects' revenue, expense and other items in its financial
statements. Revenue from Projects is only recognized as it
is received as distributions by the Trust, and thus revenues
may fluctuate as the result of delays or accelerations of
distributions from Projects.
Liquidity and Capital Resources
During 1995, the South Boston Project had significant
requirements for capital as the result of catastrophic
failure of two engines and the concurrent construction
of a waste oil treatment plant for that facility. As a
result, distributions from South Boston to the Trust were
reduced. The Managing Shareholder provided bridge financing
as necessary to the Trust, which is reflected in the "due to
affiliates" items in the financial statements. The Managing
Shareholder provided $155,000 for these purposes during the
first quarter of 1996 and an additional $17,500 in the
second quarter.
The South Boston Project filed property damage and business
interruption insurance claims against its insurer for the
engine failures and has received a total of $384,000 through
June 1996 and a payment of $160,000, representing
substantially all of the amount allowed by the insurer,
through July 1996. The Trust does not anticipate
any additional material recovery on the claim. These
proceeds have been used at the South Boston Project to fund
repairs and to substantially repay bridge financing extended
by the Managing Shareholder to that Project. At this time,
the Managing Shareholder believes that the major demands for
capital at South Boston have ended.
The Managing Shareholder believes that Trust cash flow for
the remainder of 1996, comprised mainly of distributions
from the Olinda Project and anticipated distributions from
the South Boston Project, together with its own resources,
will be sufficient to meet the Trust's liquidity and capital
needs, along with distributions to Investors at the current
rate, for the remainder of 1996.
Although the completion of the waste oil processing plant at
South Boston removes a number of uncertainties regarding
that plant's operation, the issues identified at Items 1 and
3 of the Trust's Annual Report on Form 10-K for the year
ended December 31, 1995 remain. The Trust is currently
reviewing its investments in light of recent regulatory
developments and intends to report to its Investors later in
1996 as to its conclusions.
PART II - OTHER INFORMATION
Item #1 Legal Proceedings
Please refer to Item 3 of the Annual Report on Form 10-K for
the year ended December 31, 1995, as to legal proceedings.
Item #6 Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on Form 8-K
No current reports have been filed on Form 8-K
during this quarter.
RIDGEWOOD ELECTRIC POWER TRUST I
SIGNATURES
Pursuant to the requirement 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 I
Registrant
August 13, 1996 By /s/ Robert K. Brady
Date Robert K. Brady
Senior Vice President and
Chief Financial Officer
(signing on behalf of the
Registrant and as
principal financial
officer)