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 March 31, 1998
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 [ ]
<PAGE>
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PART I. - FINANCIAL INFORMATION
ITEM I - FINANCIAL STATEMENTS
RIDGEWOOD ELECTRIC POWER TRUST I
BALANCE SHEET
<CAPTION>
March 31, December 31,
1998 1997
(unaudited)
<S> <C> <C>
Assets:
Investments power generation projects $ 6,123,874 $ 6,102,658
Cash and cash equivalents 905,812 1,042,568
Other assets 121,123 109,932
Total assets $ 7,150,809 $ 7,255,158
Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses $ 44,009 $ 47,452
Due to affiliates 99,421 214,563
Total liabilities 143,430 262,015
Shareholders' equity:
Shareholders' equity (105.5 shares issued
and outstanding) 7,027,464 7,013,370
Managing shareholder's accumulated deficit (20,085) (20,227)
Total shareholders' equity 7,007,379 6,993,143
Total liabilities and
shareholders' equity $ 7,150,809 $ 7,255,158
<FN>
See accompanying note to financial statements.
</TABLE>
<PAGE>
<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF OPERATIONS (Unaudited)
<CAPTION>
Three months ended
March 31, March 31,
1998 1997
<S> <C> <C>
Revenue:
Income from power generation projects $347,819 $ 147,449
Interest income 20,902 31,078
Total revenue 368,721 178,527
Expenses:
Accounting and legal fees 9,682 9,097
Management fee 18,624 24,584
Trustee fees 2,500 2,500
Miscellaneous 3,980 3,609
Total expenses 34,786 39,790
Net income $333,935 $138,737
<FN>
See accompanying note to financial statements
</TABLE>
<PAGE>
<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited)
<CAPTION>
Managing
Shareholders Shareholder Total
<S> <C> <C> <C>
Shareholders' equity,
December 31, 1997 $7,013,370 $(20,227) $6,993,143
Cash distributions (316,502) (3,197) (319,699)
Net income for the period 330,596 3,339 333,935
Shareholders' equity,
March 31, 1998 $7,027,464 $(20,085) $7,007,379
<FN>
See accompanying note to financial statements
</TABLE>
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<TABLE>
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF CASH FLOWS (Unaudited)
Three months ended
March 31, March 31,
1998 1997
<S> <C> <C>
Cash flows from operating
activities:
Net income $333,935 $138,737
Adjustments to reconcile net
income to cash provided by
operating activities:
Additional investment in power
generation project (21,216) ---
Return of investment in power
generation project --- 3,259,152
Changes in assets and liabilities:
Decrease in due from affiliates --- 367,667
Increase in other assets (11,191) (15,007)
Decrease in accounts payable
and accrued expenses (3,443) (15,248)
Decrease in due to affiliates (115,142) (752,449)
Total adjustments (150,992) 2,844,115
Net cash provided by operating
activities 182,943 2,982,852
Cash flows used in financing
activities:
Cash distributions to
shareholders (319,699) (181,918)
Net cash used in
financing activities (319,699) (181,918)
Net (decrease) increase in
cash and cash equivalents (136,756) 2,800,934
Cash and cash equivalents
beginning of year 1,042,568 327,322
Cash and cash equivalents
end of period $ 905,812 $3,128,256
<FN>
See accompanying note to financial statements
</TABLE>
<PAGE>
Ridgewood Electric Power Trust I
Note to Financial Statements (unaudited)
1. General
In the opinion of management, the accompanying unaudited financial statements
contain all adjustments, which consist of normal recurring adjustments,
necessary for the fair representation of the results for the interim periods.
Additional footnote disclosure concerning accounting polices and other matters
are disclosed in Ridgewood Electric Power Trust I's financial statements
included in the 1997 Annual Report on Form 10-K, which should be read in
conjunction with these financial statements. Certain prior year amounts have
been reclassified to conform to the current year presentation.
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.
<PAGE>
ITEM II - 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 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 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.
Introduction
The Trust carries its investment in the Projects it owns at fair value and
does not consolidate its financial statements with the financial statements of
the Projects. Revenue is recorded by the Trust as cash distributions are
received from the Projects. Trust revenues may fluctuate from period to
period depending on the operating cash flow generated by the Projects and the
amount of cash retained to fund capital expenditures.
Results of Operations
Quarter ended March 31, 1998 compared to quarter ended March 31, 1997
As summarized below, total revenue increased 106.1% to $369,000 in the first
quarter of 1998 from $179,000 in the first quarter of 1997, primarily due to a
$332,000 increase in income from the Olinda Project that was partially offset
by a decrease of $132,000 from the South Boston Project:
Project 1998 1997
Olinda $ 348,000 $ 16,000
South Boston --- 132,000
Interest income 21,000 31,000
Total $ 369,000 $ 179,000
The increased revenue from the Olinda Project in the first quarter of 1998
reflects the Trust's increased investment in the Olinda Project which occurred
in July 1997 as well as increased operating efficiencies from the plant. The
Trust now owns 100% of the Project rather than only a 15% cumulative priority
return on its original investment. The decline in revenues from the South
Boston project is a result of the Trust's 1997 settlement of its dispute with
Virginia Electric Power Company and the sale of its interest in the South
Boston project.
Total expenses of $35,000 in the first quarter of 1998 were comparable to the
$40,000 incurred in the same period in 1997.
Liquidity and Capital Resources
In 1997, the Olinda Project entered into a revolving credit agreement with
Fleet Bank, N.A. (the "Bank") whereby the Bank provided a five year committed
line of credit facility of $750,000 which decreases by $100,000 on each
anniversary of the facility. Outstanding borrowings bear interest at the
Bank's prime rate or, at the Olinda Projects's choice, at LIBOR plus 2.5%. The
credit agreement requires the Olinda Projects to maintain a ratio of total
debt to tangible net worth of no more than 1 to 1. The Trust guaranteed the
obligations of the Olinda Project under the credit facility. There have been
no borrowings under this line of credit facility in 1998.
Obligations of the Trust are generally limited to making distributions to
shareholders of available operating cash flow generated by its investments,
payment of the management fee to the Managing Shareholder and payment of
certain accounting and legal services to third parties. The Trust's policy is
to distribute to shareholders as much cash as is prudent. Accordingly, the
Trust has not found it necessary to retain a significant amount of working
capital.
The Trust anticipates that its cash flow during 1998 will be adequate to fund
its obligations.
<PAGE>
PART II - OTHER INFORMATION
Item #6 Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 27. Financial Data Schedule
<PAGE>
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
May 14, 1998 By /s/ Martin V. Quinn
Date Martin V. Quinn
Senior Vice President and
Chief Financial Officer
(signing on behalf of the
Registrant and as
principal financial
officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from the Registrant's unaudited interim financial
statements for the three months ended March 31, 1998 and is
qualified in its entirety by reference to those financial
statements.
</LEGEND>
<CIK> 0000924386
<NAME> RIDGEWOOD ELECTRIC POWER TRUST I
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 905,812
<SECURITIES> 6,751,550<F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,026,935
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,778,485
<CURRENT-LIABILITIES> 771,106
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 7,007,379<F2>
<TOTAL-LIABILITY-AND-EQUITY> 7,778,485
<SALES> 0
<TOTAL-REVENUES> 368,721
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 34,786
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 333,935
<INCOME-TAX> 0
<INCOME-CONTINUING> 333,935
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 333,935
<EPS-PRIMARY> 3,165
<EPS-DILUTED> 3,165
<FN>
<F1>Investments in power project partnerships.
<F2>Represents Investor Shares of beneficial interest in
Trust with capital accounts of $ 7,027,464 less managing
shareholder's accumulated deficit of $(20,085).
</FN>
</TABLE>
