FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2004
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 (I.R.S. Employer
incorporation or organization) Identification No.)
1314 King Street, Wilmington, Delaware 19801
-------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(302) 888-7444
Registrant's telephone number, including area code:
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
Item 1. Financial Statements
Ridgewood Electric Power Trust IV
Consolidated Financial Statements
March 31, 2004
Ridgewood Electric Power Trust IV
Consolidated Balance Sheets(unaudited)
- ------------------------------------------------------------------------------
March 31, December 31,
2004 2003
------------ ------------
Assets:
Cash and cash equivalents ...................... $ 625,484 $ 771,561
Accounts receivable ............................ 1,445,146 939,603
Debt reserve fund .............................. -- 756,928
Due from affiliates ............................ 529,691 715,405
Other assets ................................... 109,154 76,817
------------ ------------
Total current assets ........... 2,709,475 3,260,314
Investments:
Maine Hydro Projects ........................... 4,032,686 3,976,612
Maine Biomass Projects ......................... 2,859,878 3,469,735
Plant and equipment ............................ 16,953,175 16,944,682
Accumulated depreciation ....................... (6,712,735) (6,500,647)
------------ ------------
10,240,440 10,444,035
------------ ------------
Electric power sales contract .................. 8,338,040 8,338,040
Accumulated amortization ....................... (4,420,367) (4,281,426)
------------ ------------
3,917,673 4,056,614
------------ ------------
Spare parts inventory .......................... 823,464 823,464
Deposit ........................................ 75,000 --
------------ ------------
Total assets ............................ $ 24,658,616 $ 26,030,774
------------ ------------
Liabilities and Shareholders' Equity:
Liabilities:
Current maturities of long-term debt ........... $ -- $ 867,223
Accounts payable and accrued expenses .......... 855,878 578,870
Due to affiliates .............................. 1,083,762 1,606,136
------------ ------------
Total current liabilities ................ 1,939,640 3,052,229
Minority interest in the Providence Project .... 5,938,861 5,669,648
Commitments and contingencies
Shareholders' Equity:
Shareholders' equity (476.8875 investor
shares issued and outstanding) ................ 17,017,381 17,540,875
Managing shareholder's accumulated deficit
(1 management share issued and outstanding) .... (237,266) (231,978)
------------ ------------
Total shareholders' equity ............... 16,780,115 17,308,897
------------ ------------
Total liabilities and shareholders' equity $ 24,658,616 $ 26,030,774
------------ ------------
See accompanying notes to consolidated financial statements.
Ridgewood Electric Power Trust IV
Consolidated Statements of Operations(unaudited)
- ------------------------------------------------------------------------------
Three Months Ended
--------------------------
March 31, March 31,
2004 2003
----------- -----------
Power generation revenue ................ $ 1,957,806 $ 1,897,948
Renewable attribute revenue ............. 1,152,461 336,570
Sublease income ......................... 138,180 138,441
----------- -----------
Total revenue ............... 3,248,447 2,372,959
Cost of sales, including
depreciation and amortization
of $351,029 and $349,580
in 2004 and 2003 ....................... 2,278,062 1,598,370
----------- -----------
Gross profit ............................ 970,385 774,589
----------- -----------
General and administrative expenses ..... 288,555 190,150
Management fee .......................... 129,816 142,017
----------- -----------
Total other operating expenses 418,371 332,167
----------- -----------
Income from operations .................. 552,014 442,422
----------- -----------
Other income (expense):
Interest income ................ 804 2,096
Interest expense ............... (13,887) (41,906)
Other (expense) income, net .... (3,909) (3,433)
Income (loss) from
Maine Hydro Projects .......... 56,074 (57,511)
Loss from Maine Biomass Projects (609,858) (171,117)
----------- -----------
Net other expense .......... (570,776) (271,871)
----------- -----------
(Loss) income before minority interest .. (18,762) 170,551
Minority interest in the earnings of the
Providence Project .................... (269,212) (212,341)
----------- -----------
Net loss ............................. $ (287,974) $ (41,790)
----------- -----------
See accompanying notes to the consolidated financial statements.
Ridgewood Electric Power Trust IV
Consolidated Statements of Changes in Shareholders' Equity (unaudited)
- ------------------------------------------------------------------------------
Managing
Shareholders Shareholder Total
------------ ------------- -------------
Shareholders' equity (deficit),
December 31, 2003 ............ $ 17,540,875 $ (231,978) $ 17,308,897
Cash distributions ............ (238,400) (2,408) (240,808)
Net loss for the period ....... (285,094) (2,880) (287,974)
------------ ------------ ------------
Shareholders' equity (deficit),
March 31, 2004 ............... $ 17,017,381 $ (237,266) $ 16,780,115
------------ ------------ ------------
See accompanying notes to consolidated financial statements.
Ridgewood Electric Power Trust IV
Consolidated Statements of Cash Flows (unaudited)
- -----------------------------------------------------------------------------
Three Months Ended
----------------------
March 31, March 31,
2004 2003
--------- ---------
Cash flows from operating activities:
Net loss ....................................... $(287,974) $ (41,790)
--------- ---------
Adjustments to reconcile net loss to
net cash flows from operating
activities:
Depreciation and amortization ................. 351,029 349,580
Minority interest in earnings of
the Providence Project ....................... 269,212 212,341
(Income) loss from unconsolidated
Maine Hydro Projects ........................ (56,074) 57,511
Loss from unconsolidated Maine Biomass Projects 609,858 171,117
Changes in assets and liabilities:
(Increase) decrease in accounts receivable . (505,543) 34,745
Decrease in insurance claim receivable ..... -- 258,900
(Increase) in other assets ................. (32,337) (5,536)
(Increase) in deposits ..................... (75,000) --
Increase (decrease) in accounts payable
and accrued expenses ...................... 277,008 (23,509)
(Increase) in due to/from affiliates, net .. (336,660) (486,629)
--------- ---------
Total adjustments ................. 501,493 568,520
--------- ---------
Net cash provided by operating activities .. 213,519 526,730
--------- ---------
Cash flows from investing activities:
Capital expenditures ........................... (8,493) --
--------- ---------
Net cash used in investing activities ...... (8,493) --
--------- ---------
Cash flows from financing activities:
Payments to reduce long-term debt .............. (867,223) (230,307)
Decrease (increase) in restricted cash ......... 756,928 (101,490)
Cash distributions to shareholders ............. (240,808) (240,808)
--------- ---------
Net cash used in financing activities ...... (351,103) (572,605)
--------- ---------
Net decrease in cash and cash equivalents ........... (146,077) (45,875)
Cash and cash equivalents, beginning of period ...... 771,561 54,637
--------- ---------
Cash and cash equivalents, end of period ............ $ 625,484 $ 8,762
--------- ---------
See accompanying notes to consolidated financial statements.
Ridgewood Electric Power Trust IV
Notes to Consolidated Financial Statements (unaudited)
- -----------------------------------------------------------------------------
1. General
In the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments, which consist of normal recurring
adjustments, necessary for the fair presentation of the results for the interim
periods. Additional footnote disclosure concerning accounting policies and other
matters are disclosed in Ridgewood Electric Power Trust IV's consolidated
financial statements included in the 2003 Annual Report on Form 10-K, which
should be read in conjunction with these consolidated financial statements.
The results of operations for an interim period should not necessarily be taken
as indicative of the results of operations that may be expected for a twelve
month period.
The consolidated financial statements include the accounts of the Trust and the
limited partnerships owning the Providence Project and the California Pumping
project. The Trust uses the equity method of accounting for its investments in
the Maine Hydro Projects and the Maine Biomass Projects, which are owned 50%or
less by the Trust.
2. Summary Results of Operations for Selected Investments
Summarized financial information for the Maine Hydro Projects, which are
accounted for under the equity method, are as follows:
Balance Sheet
March 31, December 31,
2004 2003
---------- ----------
Total assets ....... $8,600,412 $9,058,870
---------- ----------
Stockholders' equity $8,065,371 $7,953,223
---------- ----------
Statement of Operations
Three Months Ended March 31,
2004 2003
--------- ---------
Revenue ......... $ 878,000 $ 763,000
Operating expense 766,000 877,000
Net income (loss) 112,000 (114,000)
Summarized financial information for the Maine Biomass Projects, which are
accounted for under the equity method, are as follows:
Balance Sheet
March 31, December 31,
2004 2003
----------- -----------
Total assets ... $ 5,593,219 $ 4,248,497
----------- -----------
Members' deficit $(8,432,814) $(7,213,099)
----------- -----------
Statement of Operations
Three Months Ended March 31,
2004 2003
----------- -----------
Revenue ..... $ 1,883,000 $ 2,182,000
Cost of sales 2,719,000 2,247,000
Other expense 384,000 277,000
Net loss .... (1,220,000) (342,000)
3. New Accounting Standards and Disclosures
SFAS 143
In June 2001, the Financial Accounting Standards Board ("FASB") issued SFAS 143,
Accounting for Asset Retirement Obligations, on the accounting for obligations
associated with the retirement of long-lived assets. SFAS 143 requires a
liability to be recognized in the consolidated financial statements for
retirement obligations meeting specific criteria. Measurement of the initial
obligation is to approximate fair value, with an equivalent amount recorded as
an increase in the value of the capitalized asset. The asset will be depreciated
in accordance with normal depreciation policy and the liability will be
increased for the time value of money, with a charge to the income statement,
until the obligation is settled. SFAS 143 is effective for fiscal years
beginning after June 15, 2002. The Trust adopted SFAS 143 effective January 1,
2003, with no material impact on the consolidated financial statements.
SFAS 145
In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements No.
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Correction.
SFAS No. 145 eliminates extraordinary accounting treatment for reporting gain or
loss on debt extinguishment, and amends other existing authoritative
pronouncements to make various technical corrections, clarify meanings, or
describe their applicability under changed conditions. The Trust adopted SFAS
145 effective January 1, 2003, with no material impact on the consolidated
financial statements.
SFAS 146
In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with
Exit or Disposal Activities. SFAS No. 146 requires recording costs associated
with exit or disposal activities at their fair values when a liability has been
incurred. The Trust adopted SFAS 146 effective January 1, 2003, with no material
impact on the consolidated financial statements.
FIN 46
In December 2003, the FASB issued FASB Interpretation No. 46, (Revised December
2003) "Consolidation of Variable Interest Entities" ("FIN 46") which changes the
criteria by which one company includes another entity in its consolidated
financial statements. FIN 46 requires a variable interest entity to be
consolidated by a company if that company is subject to a majority of the risk
of loss from the variable interest entity's activities or entitled to receive a
majority of the entity's residual returns or both. The consolidation
requirements of FIN 46 apply immediately to variable interest entities created
after December 31, 2003, and apply in the first fiscal period ending after March
15, 2004, for variable interest entities created prior to January 1, 2004. The
Trust adopted the disclosure provisions of FIN 46 effective December 31, 2002,
with no material impact to the consolidated financial statements. The Trust
implemented the full provisions of FIN 46 effective January 1, 2004, with no
material impact on the consolidated financial statements.
SFAS 149
In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities." SFAS No. 149 amends and
clarifies the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging activities
under SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." SFAS No. 149 is generally effective for contracts entered into or
modified after June 30, 2003 and for hedging relationships designated after June
30, 2003. The Trust adopted SFAS 149 effective July 1, 2003, with no material
impact on the consolidated financial statements.
SFAS 150
In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity. SFAS No. 150
establishes standards for classifying and measuring certain financial
instruments with characteristics of both liabilities and equity. The Trust
adopted SFAS 150 effective July 1, 2003, with no material impact on the
consolidated financial statements.
4. Long-term Debt
On February 13, 2004, the Providence Project made a payment of $813,257 to pay
off the remaining balance of its collateralized non-recourse notes. The final
payment consisted of $90,738 in cash and the transfer of the $722,519 in the
restricted cash debt reserve fund at February 13, 2004.
5. Related Party Transactions
From time to time, the Trust records short-term payables and receivables from
other affiliates in the ordinary course of business. The amounts payable and
receivable with the other affiliates do not bear interest. At March 31, 2004 and
December 31, 2003, the Trust had outstanding payables and receivables, with the
following affiliates:
Due From Due To
----------------------- -----------------------
March 31, December 31, March 31, December 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Ridgewood Power
Management LLC .. $ -- $ -- $ 281,924 $ 42,006
Ridgewood Electric
Power Trust III . -- -- 19,881 569,463
Ridgewood Power .. -- -- 669,719 674,921
Maine Hydro ...... -- 644,405 92,595 --
Maine Biomass .... 458,691 -- -- 298,309
Other affiliates . 71,000 71,000 19,643 21,437
---------- ---------- ---------- ----------
Total .... $ 529,691 $ 715,405 $1,083,762 $1,606,136
========== ========== ========== ==========
6. Financial Information by Business Segment
The Trust's business segments were determined based on similarities in economic
characteristics and customer base. The Trust's principal business segments
consist of wholesale and retail.
Common services shared by the business segments are allocated on the basis of
identifiable direct costs, time records or in proportion to amount invested in
projects managed by Ridgewood Management.
The financial data for business segments are as follows:
Wholesale
--------------------------------------------
For the Three Months Ended March 31,
--------------------------------------------
2004 2003
-------------------- --------------------
Revenue $3,156,112 $2,286,533
Depreciation and
amortization 335,358 335,358
Operating income 767,179 634,684
Total assets 17,600,229 18,899,965
Capital expenditures 8,493 ---
Retail
---------------------------------------------
For the Three Months Ended March 31,
---------------------------------------------
2004 2003
-------------------- ---------------
Revenue $92,335 $86,426
Depreciation and
amortization 15,671 14,222
Operating income (loss) (32,553) (21,494)
Total assets 296,206 348,961
Capital expenditures --- ---
Corporate
----------------------------------------------
For the Three Months Ended March 31,
----------------------------------------------
2004 2003
-------------------- -----------------
Revenue $ --- $ ---
Depreciation and
amortization --- ---
Operating loss (182,612) (170,768)
Total assets 6,762,181 7,813,725
Capital expenditures --- ---
Total
---------------------------------------------
For the Three Months Ended March 31,
---------------------------------------------
2004 2003
-------------------- ---------------
Revenue $3,248,447 $2,372,959
Depreciation and
amortization 351,029 349,580
Operating income (loss) 552,014 442,422
Total assets 24,658,616 27,062,651
Capital expenditures 8,493 ---
7. Subsequent Events
Maine Hydro Projects
On January 28, 2004, Ridgewood Maine Hydro Partners L.P. ("Ridgewood Maine
Hydro") (a/k/a Maine Hydro Projects) filed a complaint against CHI Operations,
Inc. and certain of its officers, employees and affiliates (collectively the
"Defendants") in the Superior Court of Kennebec County, Maine. Ridgewood Maine
Hydro was seeking relief from the court related to a long-term fraudulent scheme
perpetrated by the Defendants related to charges under an Operation, Maintenance
and Administration Agreement (the "OM&A Agreement") dated December 23, 1996.
On April 30, 2004, Ridgewood Maine Hydro and the Defendants agreed to a
settlement of the dispute. As a result of the settlement, (a) the OM&A Agreement
was terminated on April 30, 2004 without further obligation or liability, (b)
Defendants paid $500,000 to Ridgewood Maine Hydro, and (c) invoices totaling
approximately $500,000 due from Ridgewood Maine Hydro to Defendants for services
rendered under the OM&A Agreement were cancelled.
On April 30, 2004, Ridgewood Power Management LLC ("Ridgewood Management"), an
affiliate of the Managing Shareholder of the Trust, began operating the projects
under an operating agreement with Ridgewood Maine Hydro. Under the operating
agreement, Ridgewood Management will charge the Ridgewood Maine Hydro at its
cost for these services and for the allocable amount of certain overhead items.
Maine Biomass Projects
On August 6, 2004, Indeck Maine Energy LLC entered into a $6,000,0000 Mortgage
Loan Agreement with Commerce Bank/North. The loan requires the payment of
interest only during the period of September 1, 2004 through November 30, 2004.
Interest for this period will bear interest at a variable rate equal to the
Prime rate plus 1%. On December 1, 2004, the loan shall convert to a term loan
and will bear interest based on the Five Year Treasury Bill rate as of November
24, 2004 plus 275 basis points. Monthly principal payments of $100,000 will
commence on December 1, 2004 and will be paid with interest through December 1,
2009.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Dollar amounts in this discussion are rounded to the nearest $1,000.
Introduction
The consolidated financial statements include the accounts of the Trust and the
limited partnerships owning the Providence Project and the California Pumping
project. The Trust uses the equity method of accounting for its investments in
the Maine Hydro Projects and the Maine Biomass Projects, which are owned 50% or
less by the Trust.
Critical Accounting Policies and Estimates
For a complete discussion of critical accounting policies, refer to "Significant
Accounting Policies" in Item 7 of the Trust's 2003 Form 10-K. There have been no
substantive changes to those policies and estimates.
Results of Operations
Total revenue for the first quarter of 2004 was $3,248,000, compared to
$2,373,000 for the first quarter of 2003. The increase in total revenue is
primarily attributable to the $815,000 increase in renewable attribute revenue
from the Providence Project. In addition to its 2003 qualification status in the
State of Massachusetts energy market, the Providence Project began to sell its
energy attributes in the Connecticut energy market in the first quarter of 2004.
Gross profit increased $195,000 to $970,000 for the first three months of 2004.
The increase is a result of the increase in renewable attribute revenue,
partially offset by the higher maintenance expenses incurred by the Providence
Project in the current year.
General and administrative expenses increased $99,000 to $289,000 for the first
quarter of 2004. The management fee decreased from $142,000 in the first quarter
of 2003 to $130,000 in the same period in 2004 as a result of the Trust's lower
net asset balance.
Interest expense was reduced by $28,000 from $42,000 in the first quarter of
2003 to $14,000 in the first quarter of 2004 as a result of the Providence
Project paying off the balance of its debt in the first quarter of 2004.
Equity income from the Maine Hydro Projects increased $114,000 from a loss of
$58,000 for the first three months of 2003 to income of $56,000 for the first
three months of 2004. The increase is due to the higher output achieved as a
result the increase in precipitation and the lower operating expenses incurred
in the first quarter of 2004.
The equity loss from the Maine Biomass Projects increased from $171,000 in the
first quarter of 2003 to $610,000 in the same period in 2004. The increase in
the equity loss in the Maine Biomass Projects is primarily attributable to the
increase in repairs and maintenance costs incurred as the result of
refurbishing, staffing and restarting the idle Eastport plant.
Liquidity and Capital Resources
Cash provided by operating activities for the three months ended March 31, 2004
was $214,000 as compared to $527,000 for the three months ended March 31, 2003.
The decrease in cash flow from operating activities is primarily the result of
the increase in accounts receivable in 2004 and the absence of the proceeds
received in the first quarter of 2003 from a 2002 insurance claim.
Cash used in investing activities was zero for the first quarter of 2003 as
compared to $8,000 used in the purchase of machinery and equipment in the first
quarter of 2004.
Cash used in financing activities for the first three months of 2004 was
$351,000 as compared to $573,000 for the first three months of 2003. The
decrease in cash flow used in financing activities is due to the Trust
transferring the restricted debt reserve fund to pay off the remaining principal
balance of long-term debt.
On June 26, 2003, Ridgewood Renewable Power LLC, the Managing Shareholder of the
Trust, entered into a $5,000,0000 Revolving Credit and Security Agreement with
Wachovia Bank, National Association. The agreement allows the Managing
Shareholder to obtain loans and letters of credit for the benefit of the trusts
and funds that it manages. The agreement expires on June 30, 2004. As part of
the agreement, the Trust agreed to limitations on its ability to incur
indebtedness and liens and make guarantees. On February 20, 2004, the Managing
Shareholder and Wachovia Bank amended the agreement increasing the amount to
$6,000,000 and extending the date of expiration to June 30, 2005.
The Trust has historically financed its operations from cash generated from its
subsidiaries' operations. Obligations of the Trust are generally limited to
payment of the management fee to the Managing Shareholder and payment of certain
accounting and legal services to third parties. The Trust expects that its cash
flows from operations and cash on hand will be sufficient to fund its
obligations and any distributions declared for the next twelve months.
Item 4. Controls and Procedures
Based on their evaluation, as of a date within 90 days of the filing date of
this Form 10-Q, the Trust's Chief Executive Officer and Chief Financial Officer
have concluded that the Trust's disclosure controls and procedures (as defined
in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as
amended) are effective. There have been no significant changes in internal
controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.
Management has identified deficiencies in the Trust's ability to process and
summarize financial information of certain individual projects and equity
investees on a timely basis. Management is establishing a project plan to
address this deficiency.
Forward-looking statement advisory
This Quarterly Report on Form 10-Q, as with some other statements made by the
Trust from time to time, contains forward-looking statements. These statements
discuss business trends and other matters relating to the Trust's future results
and the business climate and are found, among other places, in the notes to
financial statements and at Part I, Item 2, Management's Discussion and
Analysis. 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 statements here.
The Trust therefore warns readers of this document that they should not rely on
these forward-looking statements without considering all of the things that
could make them inaccurate. The Trust's other filings with the Securities and
Exchange Commission and its Confidential Memorandum discuss many (but not all)
of the risks and uncertainties that might affect these forward-looking
statements.
Some of these are changes in political and economic conditions, federal or state
regulatory structures, government taxation, spending and budgetary policies,
government mandates, demand for electricity and thermal energy, the ability of
customers to pay for energy received, supplies of fuel and prices of fuels,
operational status of plant, mechanical breakdowns, availability of labor and
the willingness of electric utilities to perform existing power purchase
agreements in good faith. Some of the cautionary factors that readers should
consider are described in the Trust's most recent Annual Report on Form 10-K.
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.
PART II - OTHER INFORMATION
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RIDGEWOOD ELECTRIC POWER TRUST IV
Registrant
October 14, 2004 By /s/ Christopher I. Naunton
Date Christopher I. Naunton
Vice President and
Chief Financial Officer
(signing on behalf of the
Registrant and as
principal financial
officer)
CERTIFICATION PURSUANT TO RULE 13A-14 UNDER
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
I, Robert E. Swanson, Chief Executive Officer of Ridgewood Electric Power Trust
IV ("registrant"), certify that:
1. I have reviewed this quarterly report on Form 10-Q of the registrant;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
Registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this quarterly report is being prepared;
(b) Evaluated the effectiveness of the Registrant's disclosure
controls and procedures and presented in the quarterly report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this quarterly
report based on such evaluation; and
(c) Disclosed in this quarterly report any change in the Registrant's
internal control over financial reporting that occurred during the
Registrant's most recent fiscal quarter that has materially affected,
or is reasonably likely to materially affect, the Registrant's
internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and senior management:
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the Registrant's ability to record,
process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant's internal control
over financial reporting.
Date: October 14, 2004
/s/ Robert E. Swanson
- -----------------------
Robert E. Swanson
Chief Executive Officer
CERTIFICATION PURSUANT TO RULE 13A-14 UNDER
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
I, Christopher I. Naunton, Chief Financial Officer of Ridgewood Electric Power
Trust IV ("registrant"), certify that:
1. I have reviewed this quarterly report on Form 10-Q of the registrant;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
Registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this quarterly report is being prepared;
(b) Evaluated the effectiveness of the Registrant's disclosure
controls and procedures and presented in the quarterly report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this quarterly
report based on such evaluation; and
(c) Disclosed in this quarterly report any change in the Registrant's
internal control over financial reporting that occurred during the
Registrant's most recent fiscal quarter that has materially affected,
or is reasonably likely to materially affect, the Registrant's
internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and senior management:
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the Registrant's ability to record,
process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant's internal control
over financial reporting.
Date: October 14, 2004
/s/ Christopher I. Naunton
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Christopher I. Naunton
Chief Financial Officer