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 September 30, 2000
Commission file Number 0-24240
RIDGEWOOD ELECTRIC POWER TRUST I
(Exact name of registrant as specified in its charter.)
Delaware 22-3105824
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
947 Linwood Avenue, Ridgewood, New Jersey 07450-2939
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(Address of principal executive offices) (Zip Code)
(201) 447-9000
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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 [ ]
<PAGE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
Ridgewood Electric Power Trust I
Financial Statements
September 30, 2000
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Ridgewood Electric Power Trust I
Balance Sheet
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September 30, December 31,
2000 1999
----------- -----------
(unaudited)
Assets:
Investments in power generation projects ..... $ 6,906,986 $ 6,583,781
Cash and cash equivalents .................... 1,415,329 1,142,009
Other assets ................................. 40,592 41,055
----------- -----------
Total assets ............................. $ 8,362,907 $ 7,766,845
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Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses ........ $ 49,407 $ 61,116
Due to affiliates ............................ 96,647 50,227
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Total liabilities ........................ 146,054 111,343
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Commitments and contingencies
Shareholders' equity:
Shareholders' equity (105.5 shares issued and
outstanding) ............................. 8,224,843 7,669,106
Managing shareholder's accumulated deficit ... (7,990) (13,604)
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Total shareholders' equity ............... 8,216,853 7,655,502
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Total liabilities and shareholders' equity $ 8,362,907 $ 7,766,845
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See accompanying note to financial statements.
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Ridgewood Electric Power Trust I
Statement of Operations (unaudited)
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Nine Months Ended Three Months Ended
----------------------- -----------------------
September 30, September 30 September 30, September 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
Revenue:
Income from power
generation projects .... $1,752,986 $1,482,639 $ 882,507 $ 906,038
Interest income ......... 64,564 56,482 22,568 15,369
---------- ---------- ---------- ----------
Total revenue .......... 1,817,550 1,539,121 905,075 921,407
---------- ---------- ---------- ----------
Expenses:
Accounting and legal fees 54,889 34,008 35,300 8,080
Management fee .......... 67,250 57,248 28,972 25,444
Miscellaneous ........... 14,320 36,732 352 7,919
---------- ---------- ---------- ----------
Total expenses ......... 136,459 127,988 64,624 41,443
---------- ---------- ---------- ----------
Net income .............. $1,681,091 $1,411,133 $ 840,451 $ 879,964
---------- ---------- ---------- ----------
See accompanying note to financial statements.
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Ridgewood Electric Power Trust I
Statement of Changes in Shareholders' Equity (unaudited)
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Managing
Shareholders Shareholder Total
----------- ----------- -----------
Shareholders' equity,
December 31, 1999 ...... $ 7,669,106 $ (13,604) $ 7,655,502
Cash distributions ...... (1,108,543) (11,197) (1,119,740)
Net income for the period 1,664,280 16,811 1,681,091
----------- ----------- -----------
Shareholders' equity,
September 30, 2000 ..... $ 8,224,843 $ (7,990) $ 8,216,853
----------- ----------- -----------
See accompanying note to financial statements.
<PAGE>
Ridgewood Electric Power Trust I
Statement of Cash Flows (unaudited)
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Nine Months Ended
--------------------------
September 30, September 30,
2000 1999
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Cash flows from operating activities:
Net income ................................. $ 1,681,091 $ 1,411,133
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Adjustments to reconcile net
income to net cash flows
from operating activities:
Additional investment in power
generation project ........................ (323,205) (36,855)
Changes in assets and liabilities:
Decrease in due from affiliates ........... -- 427
Decrease (increase) in other assets ....... 463 (1,201)
(Decrease) increase in accounts
payable and accrued expenses ............. (11,709) 33,990
Increase (decrease) in due to
affiliates ............................... 46,420 (3,850)
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Total adjustments ........................ (288,031) (7,489)
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Net cash provided by operating
activities ................................ 1,393,060 1,403,644
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Cash flows from financing activities:
Cash distributions to shareholders ......... (1,119,740) (937,781)
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Net cash used in financing activities ...... (1,119,740) (937,781)
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Net increase in cash and cash equivalents .. 273,320 465,863
Cash and cash equivalents, beginning of year 1,142,009 1,138,102
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Cash and cash equivalents, end of period ... $ 1,415,329 $ 1,603,965
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See accompanying note to financial statements.
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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 1999 Annual Report on Form 10-K, which should be read in
conjunction with these 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.
<PAGE>
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 Trust carries its investment in Projects 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 by the Projects to fund capital expenditures.
Results of Operations
Total revenue increased 18.1% to $1,818,000 in the first nine months of 2000
from $1,539,000 in the first nine months of 1999 due to a $146,000 increase in
income from the Olinda Project and $115,000 of income from the Hawthorne engines
which were acquired in the second half of 1999. The increased income for the
Olinda Project is attributable to lower maintenance expenses. Total revenue
decreased 1.8% to $905,000 in the three months ended September 30, 2000 from
$921,000 in the same period in 1999 mainly due to lower revenues from the Olinda
Project.
Total expenses of $136,000 in the first nine months of 2000 and $65,000 in the
three months ended September 30, 2000 were comparable to the $128,000 and
$41,000, respectively, incurred in the same periods in 1999. Higher accounting
and legal costs are the reason for three months ended September 30, 2000
increase over the same period prior year.
Liquidity and Capital Resources
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 make
regular quarterly distributions to shareholders of as much cash as is prudent.
The Trust anticipates that its cash flow during 2000 will be adequate to fund
its obligations.
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 note 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.
<PAGE>
PART II - OTHER INFORMATION
Item 1 Legal Proceedings.
Stillwater Hydroelectric Project
On November 2, 2000, the parties came to a settlement of the arbitration
proceeding brought by the two other owners of the Stillwater Project. In that
arbitration, the Trust had argued that its preferred distribution rights should
compound so that any shortfalls in the 12% annual target distributions to the
Trust would increase the Trust's equity and thus the base for the annual
distributions. The other owners asserted that the shortfalls did not compound.
The settlement occurred as part of a reorganization of the ownership of the
Project. Alan Bouley, one of the beneficial owners of NewRic-Stillwater Hydro
Partners, L.P. (one of the two other owners of the Stillwater Project), acquired
all of the equity in Hydro Energy Partners, L.P. (the other owner of the
Stillwater Project). Hydro Energy Partners, L.P. and NewRic-Stillwater Hydro
Partners, L.P. then contributed all of the loans they had made to the Project as
additional contributions by them. They also withdrew the arbitration proceeding
and agreed to a maximum principal amount of $100,000 for borrowing from Project
owners. In exchange, the Trust agreed that its distribution rights would not
compound.
Additionally, the Trust consented to Mr. Bouley's tentative proposal to finance
downstream flow improvements to the Project by renegotiating the Project's loan
agreement with CIT. The consent was on the conditions that the Project's
principal repayments before 2008 should not increase, that there should be
limits on the amount of principal repayments to be deferred and that the other
owners of the Stillwater Project should provide all additional equity capital
needed for the improvements.
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant as duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RIDGEWOOD ELECTRIC POWER TRUST I
Registrant
November 13, 2000 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)
