UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549
                            FORM 10-Q
(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1998

                                OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

For the transition period from            to

Commission file number 0-1055

                 FLORIDA PUBLIC UTILITIES COMPANY
      (Exact name of registrant as specified in its charter)

           Florida                                      59-0539080
(State or other jurisdiction of          (I.R.S. Employer Identification No.) 
  incorporation or organization)

401 South Dixie Highway, West Palm Beach, FL          33401
  (Address of principal executive offices)          (Zip Code)

(Registrant's telephone number, including area code)   (561)  832-2461

(Former name, former address and former fiscal year, if changed since last   
report)

  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

        APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
           PROCEEDINGS DURING THE PRECEDING FIVE YEARS

  Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.  Yes    No

               APPLICABLE ONLY TO CORPORATE ISSUERS

  Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.  At October 31, 1998 there were
2,999,915 shares of $1.50 par value common shares outstanding.





                 FLORIDA PUBLIC UTILITIES COMPANY
        CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                          (in thousands)


                                          September 30,  December 31, 
                                                  1998          1997     

ASSETS

Utility Plant                                 $116,706       $112,356 
  Less accumulated depreciation                 42,121         39,632 
      Net utility plant                         74,585         72,724 
 
Current Assets
  Cash and overnight investments                   521            123 
  Accounts receivable                            7,446          7,621 
  Inventories and prepayments                    3,933          4,063 
      Total                                     11,900         11,807 

Investments Held in Escrow for
  Environmental Costs                            3,095          3,024 

Deferred Charges                                 1,227          1,067 

      Total                                   $ 90,807       $ 88,622 

CAPITALIZATION AND LIABILITIES

Capitalization
  Common shareholders' equity                 $ 27,419       $ 26,189 
  Preferred stock                                  600            600 
  Long-term debt                                23,500         23,500 
      Total                                     51,519         50,289 

Current Liabilities
  Notes payable                                  4,800          7,600 
  Accounts payable                               5,778          5,596 
  Taxes accrued                                  1,608            146 
  Other                                          6,139          5,149 
  Customer deposits                              3,849          3,782 
      Total                                     22,174         22,273 

Deferred Credits                                 9,236          7,909 

Deferred Income Taxes and
  Regulatory Liability                           7,878          8,151 

      Total                                   $ 90,807       $ 88,622





                        FLORIDA PUBLIC UTILITIES COMPANY
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                 (dollars in thousands, except per share data)



                                      Three Months Ended    Nine Months Ended
                                         September 30,          September 30,  
                                         1998       1997      1998         1997

Revenues
  Natural gas                         $ 5,512    $ 6,151    $22,094     $24,431 
  Electric                             11,824     11,328     30,611      29,779 
  Propane gas                             719        727      3,149       3,092 
  Water                                   589        526      1,617       1,451 
    Total revenues                     18,644     18,732     57,471      58,753 

Cost of Fuel and Taxes
 Based on Revenues                     11,992     12,423     36,160      38,701 

Operating Margin                        6,652      6,309     21,311      20,052 

Operating Expenses
  Operations                            4,191      4,020     12,298      11,895 
  Depreciation                          1,079      1,010      3,183       3,007 
  Income taxes                            226        179      1,304       1,016 
    Total operating expenses            5,496      5,209     16,785      15,918 

Operating Income                        1,156      1,100      4,526       4,134 

Interest Charges and Other
  Interest expense                       (700)      (717)    (2,120)     (2,199)
  Other income (expense)                   (8)        12         16          32 
  Gain from sale of non-utility                                   
   property                                          837                    837 
  Income taxes on above gain                        (315)                  (315)

Net Income                                448        917      2,422       2,489 
                                               
Preferred Stock Dividends                   7          7         21          21 

Earnings For Common Stock             $   441    $   910    $ 2,401     $ 2,468 

Earnings Per Common Share             $   .15    $   .31    $   .80     $   .83 

Dividends Per Common Share            $   .16    $   .15    $   .46     $   .45 

Weighted Average Common Shares
  Outstanding                       2,996,913  2,972,710   2,990,612  2,964,282






                   FLORIDA PUBLIC UTILITIES COMPANY
   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                          (in thousands)

                                                      Nine Months Ended 
                                                         September 30,   
                                                        1998          1997 
Cash Flows from Operating Activities
  Net income                                         $ 2,422       $ 2,489 
  Adjustments to reconcile net income to net
    cash provided (used) by operating activities
    Depreciation                                       3,183         3,007 
    Gain from sale of non-utility property                            (837)
    Deferred income taxes                               (274)         (678)
    Other                                                 71           196 
  Changes in operating assets and liabilities
    Accounts receivable                                  161           563 
    Inventories and prepayments                          145           170 
    Accounts payable and accrued expenses              2,668           392 
    Environmental insurance proceeds                     122           259 
    Over recovery of fuel costs                        1,118         2,060 
    Other                                               (200)          (81)

    Net cash provided by operating activities          9,416         7,540 

Cash Flows from Investing Activities
  Construction expenditures                           (5,177)       (5,416)
  Proceeds from sale of non-utility property                           886 
  Other                                                  119           263 

    Net cash used by investing activities             (5,058)       (4,267)

Cash Flows from Financing Activities
  Repayments of short-term borrowings - net           (2,800)       (2,500)
  Dividends paid                                      (1,394)       (1,351)
  Other                                                  234           249 

    Net cash used by financing activities             (3,960)       (3,602)

Net Increase (Decrease) in Cash and Overnight
   Investments                                           398          (329)

Cash and Overnight Investments at Beginning
  of Period                                              123           841 

Cash and Overnight Investments at End of
  Period                                             $   521       $   512 





                 FLORIDA PUBLIC UTILITIES COMPANY
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        SEPTEMBER 30, 1998

1.   In the opinion of the Company, the accompanying condensed consolidated
     financial statements contain all adjustments (consisting only of normal
     recurring accruals) necessary to present fairly the financial information
     contained therein.  The results of operations are not necessarily
     indicative of the results expected for the full year.

2.   The First Mortgage Bond Indentures provide for restrictions on the payment
     of cash dividends.  At September 30, 1998, under the most restrictive
     provision, approximately $5,900,000 of retained earnings were
     unrestricted.





                 FLORIDA PUBLIC UTILITIES COMPANY
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                        SEPTEMBER 30, 1998



Financial Condition.  The Company has a $15,000,000 line of credit with its
primary bank of which $4,800,000 was outstanding at September 30, 1998.  The
line provides for interest at LIBOR plus 50 basis points.  The Company is
approved by the Florida Public Service Commission to borrow up to $15,000,000
on a line of credit basis, $14,000,000 of which is available for general
corporate purposes with the remaining $1,000,000 reserved as a contingency
for major storm repairs in the Marianna electric division.

Overview.  The Company is organized into three regulated business segments,
natural gas, electric and water and one non-regulated operation, propane gas. 
The water operation is not significant, approximating 3% of revenues.

Contributing to variations in operating margins are the effects of seasonal
weather conditions, the timing of rate increases and the migration of winter
residents and tourists to Florida during the winter season.

Summary of Operating Margins
  (in thousands)                            Nine Months Ended September 30, 
                                              1998        1997         1996 
     
Natural and Propane Gas
  Operating margin                         $12,270     $11,480      $11,934 
  Less propane gas                           1,987       1,728        1,979 
  Remainder                                $10,283     $ 9,752      $ 9,955 

Electric
  Operating margin                         $ 7,497     $ 7,189      $ 7,191 
  Less industrial                              417         428          406 
  Remainder                                $ 7,080     $ 6,761      $ 6,785 


                                            Three Months Ended September 30, 
                                              1998        1997         1996 
Natural and Propane Gas
  Operating margin                         $ 3,316     $ 3,175      $ 3,119 
  Less propane gas                             509         442          461 
  Remainder                                $ 2,807     $ 2,733      $ 2,658 

Electric
  Operating margin                         $ 2,776     $ 2,633      $ 2,600 
  Less industrial                              135         147          142 
  Remainder                                $ 2,641     $ 2,486      $ 2,458 

Operating Margin. Operating margin, defined as gross operating revenues less
cost of fuel and taxes passed-through to customers which are based on revenues,
provides a more meaningful basis for evaluating utility operations since fuel
costs and taxes passed-through to customers have no effect on results of
operations.

Nine Months Ended September 30, 1998 Compared With Nine Months Ended
September 30, 1997

Natural and Propane Gas Service. Total natural and propane gas service operating
margin increased $790,000, or 6.9% in 1998 as compared with 1997.  Excluding
propane gas operating margin from total gas operating margin, remaining
operating margin increased $531,000, or 5.4%.  The increase in natural gas
operating margin was due to a 2.2% increase in average customers for the first
nine months ended September 30, 1998 and an increase in per customer consumption
of about 2.1%, resulting primarily from an increase in heating degree days of
about 60% from the comparable period in 1997.  Propane gas operating margin
increased $259,000 or about 15% as compared with 1997.  Propane gas had a 2.6%
decrease in average customers for the nine month period ended September 30,
1998, some of whom were converted to natural gas.  The net increase in propane
operating margin is primarily due to the increase in heating degree days in
1998 and a propane rate increase that became effective in April.

Total natural and propane gas service operating margin decreased $454,000 or
about 4% in 1997 as compared with 1996.  Excluding propane gas operating margin
from total gas operating margin, remaining operating margin decreased $203,000
or about 2% in 1997 as compared with 1996.  Propane gas operating margin
decreased $251,000, or about 13%. The decrease in natural and propane gas
operating margin is due principally to an approximate 60% decrease in heating
degree days early in 1997. 

Electric Service.  Total electric service operating margin increased $308,000,
or 4.3% versus 1997.  There was an approximate 7% increase in average
consumption per customer, due primarily to warmer weather and a 2% growth in
average customers.

Total electric service operating margin decreased $2,000 in 1997 as compared
with 1996.  Excluding industrial customers, operating margin decreased $24,000.
The effect on consumption of the warmer weather early in 1997 more than offset
customer growth of 2.4%.

Operating Expenses. In 1998, operations expenses (administrative and general
expenses and other operating expenses), excluding cost of fuel and taxes passed-
through to customers, increased $403,000, or 1.9% in relation to operating
margin. Operations expenses have increased marginally in all categories of
expense due primarily to inflationary pressures.

In 1997, operations expenses, excluding cost of fuel and taxes passed-through to
customers, increased $73,000.  Such expenses increased due to inflationary
pressures and were mitigated by an increase in the amortization of net periodic
pension cost (actually a credit as the pension plan is over-funded). 
Depreciation increased, due to expansion and remodeling of our corporate
headquarters and growth of our utility plant and taxes other than income taxes
increased due to an increase in property taxes.

Income taxes were provided for at approximately the same rate in both nine-month
periods and are reduced by amortization of investment tax credits.

Interest expense decreased in 1998 versus 1997 due primarily to an approximate
16% reduction in the weighted average amounts outstanding under the line of
credit as compared with 1997.


Cash Flows. Net cash provided by operating activities increased $1,876,000 when
compared with 1997. Accounts payable and accrued expenses is the most
significant change in operating assets and liabilities, increasing $2,276,000.
Accounts payable and accrued expenses at September 30, 1998 is at traditional
levels, the apparent increase results from a decrease of $1,945,000 from
December 1996 to September 1997.

Three Months Ended September 30, 1998 Compared with Three Months Ended 
September 30, 1997

Natural and Propane Gas Service. Total natural and propane gas service operating
margin increased $141,000, or 4.4% in 1998 as compared with 1997.  Natural gas
operating margin increased $74,000, or 2.7% as compared with the third quarter
of 1997.  The increase in propane gas operating margin of 15% is due principally
to a rate increase that became effective in April. 

Total natural and propane gas service operating margin increased $56,000 or
1.8% in 1997 as compared with 1996.  Excluding propane gas operating margin
from total gas operating margin, remaining operating margin decreased $75,000
or about 2.8% in 1997 as compared with 1996.  The increase in natural gas
operating margin is due principally to an approximate 2% increase in customers
and a like increase in average consumption per customer.  Propane gas operating
margin decreased $19,000, or about 4%, due primarily to a 1% decrease in
customers (some of which were converted to natural gas) and an 6% decrease
in average consumption per customer.

Electric Service. Total electric service operating margin increased $143,000 or
5.4% versus the third quarter of 1997.  There was a 5% increase in average
consumption per customer due primarily to warmer weather in 1998.  Resulting
from such increase in consumption was an increase of more than 4% in average
operating margin per customer, excluding industrial customers. 

Total electric service operating margin increased $33,000 in 1997 as compared
with 1996.  Excluding the two industrial customers, operating margin increased
$28,000.

Operating Expenses. In 1998, operations expenses, excluding cost of fuel and
taxes passed-through to customers, increased $171,000, or 2.6% in relation to
operating margin. Operations expenses have increased marginally in all
classifications of expense, due primarily to inflationary pressures. 

In 1997, operations expenses, excluding cost of fuel and taxes passed-through
to customers, decreased $18,000.  Refer to the above comments for the 1997
nine-month period for comments regarding such expenses, depreciation and taxes
other than incomes taxes.

Income taxes were provided for at approximately the same rate in both three
month periods and are reduced by amortization of deferred investment tax
credits.

Interest expense decreased in 1998 versus 1997 due primarily to an approximate
14% reduction in the weighted average amounts outstanding under the line of
credit as compared with 1997. 

Other Matters - The Year 2000

The Company is currently involved in an ongoing project to identify its state
of readiness regarding the Year 2000 issues and their effect on the Company's 
information systems.  The Company is utilizing both internal and external
resources to evaluate and remediate required modifications.  The Company
software profile consists of approximately one-half purchased software
systems and one-half internally developed systems.  The purchased software
consists of various financial applications and the meter reading system.
The Company plans to complete the Year 2000 project, including testing of
all systems, by June 1999. Such plans are based on management's best estimates
and the ability to locate and correct all relevant computer codes on a timely
basis.  However, there is no guarantee that everything will proceed as planned
and actual results could differ from these plans.

The Company is utilizing its in-house programming staff to modify internally
developed systems in preparation for the Year 2000. The modification costs,
consisting of salary and related costs, are not significant and are being
expensed as incurred.  The purchased financial software systems were Year 2000
compliant when they were placed in service and do not require any modifications.
The Company's meter reading system will be replaced with a Year 2000 compliant
system in the first quarter of 1999 at an estimated expenditure of $80,000.

The Company is communicating with its significant suppliers to determine their
Year 2000 status and is attempting to identify potential areas of concern. 
However, there can be no guarantee that the systems of other companies on which
the Company's systems rely will be converted timely, or that a failure to
convert by a supplier or other third party, or a conversion that is incompatible
with the Company's systems, would not have a material adverse effect on the
Company.

The Company presently believes that with modifications to existing internal
software systems and conversion to a new meter reading software, any Year 2000
issues will be neutralized with no significant adverse effect on customers or
disruption to business operations.  If such modifications are not completed,
the Year 2000 issue could have a material adverse effect on the Company. The
Company has not adopted a contingency plan to address possible risks to its
systems and the need for such a plan would not be evaluated prior to June
1999.

Forward Looking Information

This report contains forward looking information that is intended to qualify
for the safe harbor provided by the Private Securities Litigation Reform Act
of 1995. Although the Company believes that its expectations are based on
reasonable assumptions, actual results could differ materially from those
currently anticipated.  Factors that could cause actual results to differ
from those anticipated include, but are not limited to, uncertainties relative
to the impact of Year 2000, the effects of regulatory actions, competition,
future economic conditions and weather.


PART II.

                        OTHER INFORMATION



Item 6. Exhibits and reports on Form 8-K.

        (a)  None.

        (b)  Reports on Form 8-K:
             There were no reports on Form 8-K filed for the quarter ending 
             September 30, 1998

                            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.

                                                         
                                   FLORIDA PUBLIC UTILITIES COMPANY
                                   (Registrant)




                                   

                                   By   /s/ Jack R. Brown             
                                   Jack R. Brown
                                   Treasurer
                                   (DULY AUTHORIZED OFFICER
                                   AND
                                   CHIEF FINANCIAL OFFICER)


Date: November 10, 1998