UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 2 TO
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) December 23, 1996
RIDGEWOOD ELECTRIC POWER TRUST IV
(Exact name of Registrant as Specified in Charter)
Delaware 0-25430 22-3324608
(State or other (Commission (IRS Employer
jurisdiction file number) Identification
of incorporation) Number)
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
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Financial Statements of Businesses Acquired.
INDEX
Page no.
Report of Independent Accountants 3
Combined Balance Sheets as of
June 30, 1996 and 1995 4
Combined Statements of Operations for the
years ended June 30, 1996 and 1995 6
Combined Statements of Cash Flows for the
years ended June 30, 1996 and 1995 7
Notes to Audited Combined Financial Statements 8
Unaudited Interim Combined Balance Sheet as of
December 23, 1996 17
Unaudited Interim Combined Statement of Operations
for the period ended December 23, 1996 19
Unaudited Interim Combined Statement of
Cash Flows for the period ended December 23, 1996 20
Notes to Unaudited Interim Financial Statements 21
<PAGE>
1177 Avenue of the Americas Telephone 212 596 7000
New York, NY 10036 Facsimile 212 596 8910
[Letterhead of Price Waterhouse LLP]
Report of Independent Accountants
February 5, 1997
To the Board of Directors
and Stockholders of
Consolidated Hydro, Inc.
In our opinion, the accompanying combined balance sheet and the related
combined statements of operations, and of cash flows present fairly, in
all material respects, the financial position of CHI Maine at June 30,
1996 and 1995, and the results of its operations and its cash flows for
the years then ended in conformity with generally accepted accounting
principles. These financial statements aore the responsibility of the
company's management; our responsibility is to express an opinion of
these financial statements based on our audits. We conducted our audits
of these statements in accordance with generally accdepted auditing
standards which require that we plan and perform the audit to obtain
reasona ble assurnace about whether the financial statements are free of
material misstatement. An audit included examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessign the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for the opinion expressed above.
/s/ Price Waterhouse LLP
<PAGE>
CHI MAINE
COMBINED BALANCE SHEET
AS OF JUNE 30, 1996 AND 1995
1996 1995
ASSETS
Current assets:
Accounts receivable $ 1,045,664 $ 787,379
Prepaid expense 63,957 60,084
Total current assets 1,109,621 847,463
Property, plant and equipment:
Land 1,372,349 1,372,450
Hydroelectric generating
facilities 7,843,069 30,710,040
Other 28,321 14,637
Less - accumulated depreciation (11,246) (5,211,725)
Construction-in-progress 843,889 958,532
Total property,
plant and equipment,
net 10,076,382 27,843,934
Intangible assets:
Goodwill -- 6,321,624
Power purchase contracts 487,305 6,215,567
FERC license costs 681,501 2,092,770
Other Intangibles 83,204 83,204
Less - accumulated amortization (17,749) (5,730,833)
Total intangible assets, net 1,234,261 8,982,332
Other assets:
Long-term deferred tax assets, net 491,153 --
Total other assets 491,153 --
Total assets $ 12,911,417 $ 37,673,729
<PAGE>
LIABILITIES AND EQUITY
1996 1995
Current liabilities:
Accounts payable
and accrued expenses $ 106,765 $ 137,882
Due to parent 21,234,371 23,536,799
Current portion of
long-term obligation
under capital lease 174,175 153,051
Total current liabilities 21,515,311 23,827,732
Long-term liabilities:
Long-term obligation
under capital lease 1,070,075 1,188,835
Long-term deferred tax
liability, net -- 6,056,679
Total long-term
liabilities 1,070,075 7,245,514
Equity:
Retained earnings/
(deficit) (9,673,969) 6,600,483
(9,673,969) 6,600,483
Total liabilities
and equity $ 12,911,417 $ 37,673,729
<PAGE>
CHI MAINE
COMBINED STATEMENT OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 1996 AND 1995
Revenues:
Power generation revenue $ 4,962,667 $ 4,068,898
Operating costs and expenses:
Management fees
to a related party 721,499 494,049
Maintenance and supplies 162,045 230,423
Environmental and regulatory 17,559 28,781
Real estate taxes 277,111 261,618
Insurance 199,591 188,317
Lease and rental costs 97,953 69,701
Legal and other professional fees 4,731 9,274
Travel, meals and vehicle costs 38,810 40,480
Utilities 69,351 63,437
Other and miscellaneous 12,435 12,271
Depreciation 415,827 827,472
Amortization 433,464 866,929
Charge for impairment
of long-lived assets 25,165,811 --
Total operating
costs and expenses 27,616,187 3,092,752
(Loss)/income
from operations (22,653,520) 976,146
Interest expense (168,764) (186,197)
(Loss)/income before
(provision)/benefit
for income taxes (22,822,284) 789,949
Benefit/(provision) for
income taxes 6,547,832 (351,329)
Net (loss)/income $ (16,274,452) $ 438,620
<PAGE>
CHI MAINE
COMBINED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 1996 AND 1995
1996 1995
Cash flows from operating activities:
Net (loss)/income $ (16,274,452) $ 438,620
Adjustments to reconcile
net (loss)/income to net
cash provided by operating
activities:
Depreciation and
amortization 849,291 1,694,401
Charge for impairment
of long-lived assets 25,165,811 --
Benefit/(provision)
relating to deferred
tax liabilities (6,647,832) 351,329
Changes in assets and liabilities:
(Increase)/decrease
in accounts receivable (258,285) 147,219
Increase in prepaid expense (3,873) (40,909)
(Decrease)/increase in
accounts payable and
accrued expenses (31,117) 80,755
Decrease in due to
parent and affiliates (2,302,428) (2,329,899)
Net cash provided by
operating activities 597,115 341,516
Cash flows from investing activities:
Capital expenditures (499,479) (255,724)
Net cash used in
investing activities (499,479) (255,724)
Cash flows from financing activities:
Reduction of long-term
obligation under capital
lease (97,636) (85,792)
Net cash used in financing
activities (97,636) (85,792)
Net increase in cash and
cash equivalents -- --
Cash and cash equivalents,
beginning of year -- --
Cash and cash equivalents,
end of year $ -- $ --
Supplemental disclosures
of cash flow information:
Cash paid during the period for:
Interest $ 113,349 $ 131,914
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY
The accompanying financial statements reflect the
combined accounts of that portion of Consolidated Hydro
Maine, Inc. ("CHIME") which comprise the Barker, Brown's
Mill, Damariscotta, Eustis, Gardiner, Greenville, Lower
Barker, Mechanic Falls, Milo, Norway, Pittsfield, Pumpkin
Hill, South Berwick, New Dam and Old Falls hydroelectric
facilities (collectively, "CHI Maine" or the "Company")
located in Maine. CHI Maine is engaged in the ownership and
operation of these 15 hydroelectric facilities, which
aggregate a total operating capacity of 11.32 megawatts, to
produce hydroelectric power.
As further explained in NOTE 9, on December 23, 1996,
Consolidated Hydro, Inc. ("CHI"), through its wholly owned
subsidiary, CHI Universal, Inc. ("CHI Universal"), sold
these 15 hydroelectric facilities to Ridgewood Maine Hydro
Partners, L.P. (the "Partnership").
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF COMBINATION
The combined financial statements include all accounts
of the CHI Maine projects. All significant intercompany
accounts and transactions have been eliminated in
combination.
USE OF MANAGEMENT'S ESTIMATES
The preparation of 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 those estimates.
<PAGE>CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continues)
REVENUE
Power generation revenue is recognized based on power
delivered at rates stipulated in the respective power
contracts (NOTE 4). Emerging Issues Task Force (EITF) Issue
91-6, "Revenue Recognition of Long-Term Power Sales
Contracts" addressed and reached consensus on certain
revenue recognition questions raised by the terms and
pricing arrangements of long-term power sales contracts
between non-utility power generators and rate-regulated
utilities. As of June 30, 1996, the Company was in
compliance with the accounting treatments discussed and the
consensus reached.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is recorded 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.
Plant and equipment are depreciated on the straight-
line method over the estimated useful lives of the
respective assets (generally, 50 years for dam and
appurtenant structures and 30 years for mechanical and
electrical equipment).
INCOME TAXES
The Company provides for deferred income taxes based on
differences in reporting certain income and expense items
for federal income tax and financial reporting purposes as
if the Company filed a separate return. The Company
accounts for energy and investment tax credits using the
flow-through method as a reduction of the provision for
federal income taxes in the year in which such credits are
utilized.
<PAGE>CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)
INTANGIBLE ASSETS
Intangible assets principally include costs incurred in
connection with power purchase agreements, FERC licenses and
goodwill, all of which are capitalized and amortized on a
straight-line basis over the periods to be benefited by such
costs, ranging from 20 to 40 years. Legal, compliance and
other related expenditures incurred in connection with the
maintenance of power purchase agreements and FERC licenses
are capitalized and amortized over the remaining term of the
applicable contract or license. Management periodically
reviews intangibles, including goodwill, for potential
impairments.
NOTE 3 - ADOPTION OF SFAS 121
CHI Maine implemented Statement of Financial Accounting
Standards No. 121 Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to Be Disposed Of
("SFAS 121") in the second quarter of fiscal 1996. This
statement establishes accounting standards for determining
impairment of long-lived assets and long-lived assets to be
disposed of. The Company periodically assesses the
realizability of its long-lived assets and evaluates such
assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of such
assets (or group of assets) may not be recoverable. For an
asset in use or under development, impairment is determined
to exist if the estimated future cash flow associated with
the asset, undiscounted and without interest charges, is
less than the carrying amount of the asset. When the
estimated future cash flow indicates that the carrying
amount of the asset will not be recovered, the asset is
written down to its fair value.
In light of the timing of the expiration of the fixed
rate period of CHI Maine's long-term power sales contracts
and other indications of a decline in the fair value of
certain of the hydroelectric facilities, the Company
determined pursuant to SFAS 121 that these assets were
impaired.
<PAGE>CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 3 - ADOPTION OF SFAS 121
As a result of the factors noted above, in fiscal 1996
CHI Maine recorded an impairment charge of $25.2 million as
a component of its loss from operations consisting of $17.7
million relating to property, plant and equipment and $7.5
million relating to intangible assets. The impairment
charge resulted in an aggregate remaining carrying value for
such written-down assets of $11.3 million. The carrying
value of these written-down assets now reflects management's
best estimate as to their fair value although there can be
no assurance that future events or changes in circumstances
will not require that such assets, or other of the Company's
assets, be written down in the future. Since December 31,
1995, the long-lived assets of the Company have been treated
as assets held for sale and accordingly, have not been
depreciated.
NOTE 4 - POWER GENERATION CONTRACTS
CHI Maine operates facilities which 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. CHI Maine sells substantially all of its
electrical output to two public utility companies, Central
Maine Power Company ("CMP") and Bangor Hydro-Electric
Company ("BHC"), pursuant to long-term power purchase
agreements. Eleven of the twelve power purchase agreements
with CMP expire in 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.
Power generation revenue by customer for the years
ended June 30, 1996 and 1995 is as follows:
1996 1995
Central Maine Power Co. $ 4,220,301 $ 3,547,875
Bangor Hydro-Electric Company 742,366 521,023
$ 4,962,667 $ 4,068,898
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 5 - LONG-TERM OBLIGATION UNDER CAPITAL LEASE
CHI Maine leases a hydroelectric facility with a net
book value of $2.5 million and $2.6 million at June 30, 1996
and 1995, respectively, pursuant to a long-term lease
agreement dated July 16, 1979, and as amended (the
"Agreement"), for an annual rent of $ 266,400 including
amounts allocated to interest expense through March 2000.
Upon proper notice, CHI Maine has the right to purchase all
the equipment covered in the Agreement at Fair Market Value
(as defined) or elect to extend the terms of the Agreement
for up to three five-year periods at a rental equal to Fair
Rental Value (as defined). In addition, CHI Maine also has
the right to terminate the Agreement and purchase the
hydroelectric facility upon proper notice and payment of a
scheduled close-out amount, which reduces to $750,000 at
April 30, 2000. This lease is accounted for as a capital
lease, and accordingly, the hydroelectric facility and
related lease obligation have been recorded in the
accompanying balance sheets.
Aggregate minimum future lease payments are as follows:
1997 $ 266,400
1998 266,400
1999 266,400
2000 949,800
Thereafter ---
Total minimum lease payments 1,749,000
Less: Amount representing interest (504,750)
Present value of net
minimum lease payments $ 1,244,250
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 6 - INCOME TAXES
Income taxes have been presented as if CHI Maine were a
separate tax paying entity, rather than part of a larger
consolidated group for federal and state income tax
purposes.
The benefit/(provision) for income consists of the
following for the years ended June 30:
1996 1995
Federal income taxes $ --- $ --
- -
State income --- --
- -
Deferred tax
benefit/(provision) 6,547,832 (351,329)
$6,547,832 $(351,329)
The benefit/(provision) for income differs from an
amount computed by applying the statutory income tax rate to
pre-tax income, as follows, for the years ended June 30:
1996 1995
Tax benefit/(provision) at US
statutory rate $7,759,577 $(268,583)
State income tax
benefit/(provision),
net of federal benefit 579,299 (29,012)
Goodwill write-off/
amortization (1,791,044) (53,734)
$6,547,832 $(351,329)
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 6 - INCOME TAXES (continued)
Significant components of the Company's deferred tax
assets and liabilities as of June 30, 1996 and 1995 are as
follows:
1996 1995
Deferred tax assets:
Net operating loss $ 586,137 $ 1,630,575
Tax credits 1,421,283 1,421,283
Lease payment obligations 184,357 220,775
Total deferred
tax assets, net 2,191,777 3,272,633
Deferred tax liabilities:
Asset basis differences (1,700,624) (9,329,312)
Total deferred
tax liabilities (1,700,624) (9,329,312)
Net deferred tax
asset/(liability) $ 491,153 $(6,056,679)
The deferred tax benefit of approximately $6.5 million
for the year ended June 30, 1996 relates to the write-down
of certain long-lived assets in accordance with SFAS 121
(see Note 3). The effective tax rate of the deferred
benefit recognized from the write-down differs from the
federal statutory rate due to the write-down of certain
assets which are not treated as temporary differences under
SFAS 109.
At June 30, 1996 and 1995, the Company had net
operating loss ("NOL") carryforwards of approximately $1.5
million and $4.4 million, respectively, expiring through
fiscal 2006. These amounts have been determined as if the
Company was a stand alone entity and not part of a larger
consolidated group for federal income tax purposes. The
Company actually has federal NOL's attributable to it under
the consolidated return regulations of approximately $8.2
million as of June 30, 1996. Of this amount, approximately
$550,000 was acquired from another entity. These NOLs,
which expire in varying amounts are restricted in terms of
utilization.
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 6 - INCOME TAXES (continued)
At June 30, 1996, the Company has approximately $1.4
million of investment and energy credits available to reduce
future income taxes for federal income tax reporting
purposes expiring during fiscal 2001 through 2003. Of this
amount, approximately $737,000 was acquired from another
entity. These credits, which expire during fiscal 2001 are
restricted in terms of utilization.
NOTE 7 - CHANGES IN RETAINED EARNINGS/(DEFICIT)
The retained earnings/(deficit) balance as of June 30,
1996 and 1995 was comprised of the following:
Beginning retained earnings June 30, 1995 $ 6,161,862
Net income June 30, 1995 438,621
Retained earnings June 30, 1995 6,600,483
Net loss June 30, 1996 (16,274,452)
Retained earnings/(deficit) June 30, 1996 $ (9,673,969)
NOTE 8 - RELATED PARTY TRANSACTIONS
MANAGEMENT FEES
CHI provides the Company with the employee labor
necessary to operate and maintain the hydroelectric
facilities. Direct labor allocable to the Company for
operations is charged at fully loaded labor costs plus a 25%
overhead charge to cover indirect labor and other costs.
These labor charges are reflected as Management Fees in the
statement of operations and were $721,499 and $494,049 for
1996 and 1995, respectively.
<PAGE>
CHI MAINE
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1996 and 1995
NOTE 8 - RELATED PARTY TRANSACTIONS (continued)
DUE TO PARENT
Due to parent generally represents amounts that were
advanced to CHI Maine by CHI for the original purchase of
the hydroelectric facilities, less any repayments on the
outstanding balance due as a result of excess cash flows
generated by CHI Maine. All net cash flows generated by the
Company are used to reduce this intercompany balance.
NOTE 9 - SUBSEQUENT EVENT
TRANSFER OF ASSETS FROM CHIME
On December 20, 1996, CHIME transferred all of the
assets and liabilities recorded on its books related to a
16th hydroelectric facility, Salmon Falls, to another 100%
owned subsidiary of CHI, CHI New Hampshire. Subsequent to
this transfer, CHIME consists of all assets and liabilities
included in CHI Maine.
SALE OF CHIME
As previously stated, on December 23, 1996, CHI,
through its wholly owned subsidiary, CHI Universal, sold
CHIME to the Partnership for a total sales price of $12.9
million. In connection with the sale the Partnership
assumed the long-term capital lease obligation of
approximately $1.2 million related to one of the projects.
The sale was made pursuant to an Agreement of Merger dated
as of July, 1, 1996 (the "Merger Agreement"), by and among
CHI, CHIME, CHI Universal, CHI Ridgewood Maine Hydro
Corporation and the Partnership.
Under the terms of a separate agreement with the
Partnership, CHI will continue to operate and maintain the
projects and provide certain administrative services to the
Partnership for an initial period of up to 15 years.
<PAGE>
CHI MAINE
COMBINED BALANCE SHEET - UNAUDITED
AS OF DECEMBER 23, 1996
ASSETS
Current assets:
Accounts receivable $ 834,336
Prepaid expense 150,149
Total current assets 984,485
Property, plant and equipment:
Land 1,370,850
Hydroelectric generating
facilities 8,110,196
Other 30,827
Less - accumulated depreciation (11,246)
Construction-in-progress 951,794
Total property,
plant and equipment,
net 10,452,421
Intangible assets:
Power purchase contracts 487,305
FERC license costs 681,501
Other Intangibles 83,204
Less - accumulated amortization (17,749)
Total intangible assets, net 1,234,261
Other assets:
Long-term deferred tax assets, net 98,153
Total other assets 98,153
Total assets $ 12,769,320
<PAGE>
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
and accrued expenses $ 116,063
Due to parent 20,478,568
Current portion of
long-term obligation
under capital lease 185,809
Total current liabilities 20,780,440
Long-term liabilities:
Long-term obligation
under capital lease 1,004,679
Total long-term
liabilities 1,004,679
Equity:
Retained deficit (9,015,799)
(9,015,799)
Total liabilities
and equity $ 12,769,320
CHI MAINE
COMBINED STATEMENT OF OPERATIONS - UNAUDITED
FOR THE PERIOD JULY 1, 1996 TO DECEMBER 23, 1996
Revenues:
Power generation revenue $ 1,879,030
Operating costs and expenses:
Management fees
to a related party 351,755
Maintenance and supplies 53,328
Environmental and regulatory 11,542
Real estate taxes 122,075
Insurance 116,517
Lease and rental costs 33,342
Legal and other professional fees 2,947
Travel, meals and vehicle costs 17,475
Utilities 32,067
Other and miscellaneous 7,374
Total operating
costs and expenses 748,422
Income
from operations 1,130,608
Interest expense (79,438)
Income before
provision
for income taxes 1,051,170
Provision for
income taxes (393,000)
Net income $ 658,170
<PAGE>
CHI MAINE
COMBINED STATEMENT OF CASH FLOWS - UNAUDITED
FOR THE PERIOD JULY 1, 1996 TO DECEMBER 23, 1996
Cash flows from operating activities:
Net income $ 658,170
Adjustments to reconcile
net income to net
cash provided by operating
activities: 393,000
Provision
relating to deferred
tax liabilities 211,328
Changes in assets and liabilities:
Decrease
in accounts receivable 211,328
Increase in prepaid expense (86,192)
Increase in
accounts payable and
accrued expenses 9,298
Decrease in due to
parent and affiliates (755,803)
Net cash provided by
operating activities 429,801
Cash flows from investing activities:
Capital expenditures (376,039)
Net cash used in investing
activities (376,039)
Cash flows from financing activities:
Reduction of obligation
under capital lease (53,762)
Net cash used in financing
activities (53,762)
Net change in cash and
cash equivalents --
Cash and cash equivalents,
beginning of year --
Cash and cash equivalents,
end of year $ --
Supplemental disclosures
of cash flow information:
Cash paid during the period for:
Interest $ (79,438)
<PAGE>
CHI Maine
NOTES TO UNAUDITED COMBINED FINANCIAL STATEMENTS
For the Period July 1, 1996 to December 23, 1996
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited combined financial statements as
of December 23, 1996, and for the period July 1, 1996 to
December 23, 1996, reflect the combined accounts of that
portion of Consolidated Hydro Maine, Inc. ("CHIME") which
comprise the Barker, Brown's Mill, Damariscotta, Eustis,
Gardiner, Greenville, Lower Barker, Mechanic Falls, Milo,
Norway, Pittsfield, Pumpkin Hill, South Berwick, and York
(New Dam and Old Falls) hydroelectric facilities
(collectively, "CHI Maine" or the "Company") located in
Maine. CHI Maine is engaged in the ownership and operation
of these hydroelectric facilities, which aggregate a total
operating capacity of 11.3 megawatts, to produce
hydroelectric power.
The unaudited combined financial statements have been
prepared on the same basis as the financial statements for
the fiscal year ended June 30, 1996, and should be read in
conjunction with the notes to the fiscal year end financial
statements.
NOTE 2 - SALE OF CHIME
On December 23, 1996, CHI, through its wholly owned
subsidiary, CHI Universal, sold CHIME to the Ridgewood Maine
Hydro Partners, L.P., an affiliate of Ridgewood Power
Corporation, for a total sales price of $12.9 million. In
connection with the sale, the buyer assumed the long-term
capital lease obligation of approximately $1.2 million
related to one of the projects. The sale was made pursuant
to an Agreement of Merger dated as of July, 1, 1996, by and
among CHI, CHIME, CHI Universal, CHI Ridgewood Maine Hydro
Corporation and the Ridgewood Maine Hydro Partners, L.P.
<PAGE>
(c) Exhibits.
Exhibit No. Item
2.1 Agreement of Merger, dated as of July 1, 1996, by
and among Consolidated Hydro Maine, Inc., CHI Universal, Inc.,
Consolidated Hydro, Inc., Ridgewood Maine Power Partners, L.P. and
Ridgewood Maine Hydro Corporation. [Previously filed.]
2.2 Letter, dated November 15, 1996, amending
Agreement of Merger. [Previously filed.]
2.3 Letter, dated December 3, 1996, amending
Agreement of Merger. [Previously filed.]
10 Operation, Maintenance and Administration
Agreement, dated November __, 1996, by and among Ridgewood Maine Hydro
Partners , L.P., CHI Operations, Inc. and Consolidated Hydro, Inc.
[Previously filed.]
99 List of projects. [Previously filed.]
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 hereunto duly
authorized.
RIDGEWOOD ELECTRIC POWER TRUST IV
By: /s/ Thomas R. Brown
Thomas R. Brown, Senior Vice President
and Chief Operating Officer
Date: March 7, 1997
