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 March 31, 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 April 30, 1998
there were 1,494,693 shares of $1.50 par value common shares outstanding.










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


                                              March 31,     December 31, 
                                                 1998           1997     

ASSETS

Utility Plant                                 $113,635       $112,356 
  Less accumulated depreciation                 40,584         39,632 
      Net utility plant                         73,051         72,724 
 
Current Assets
  Cash and overnight investments                   642            123 
  Accounts receivable                            7,402          7,621 
  Inventories and prepayments                    3,831          4,063 
      Total                                     11,875         11,807 

Investments Held in Escrow for
  Environmental Costs                            3,063          3,024 

Deferred Charges                                 1,074          1,067 

      Total                                   $ 89,063       $ 88,622 









CAPITALIZATION AND LIABILITIES

Capitalization
  Common shareholders' equity                 $ 27,228       $ 26,189 
  Preferred stock                                  600            600 
  Long-term debt                                23,500         23,500 
      Total                                     51,328         50,289 

Current Liabilities
  Notes payable                                  5,900          7,600 
  Accounts payable                               4,875          5,596 
  Taxes accrued                                  1,366            146 
  Other                                          5,705          5,149 
  Customer deposits                              3,770          3,782 
      Total                                     21,616         22,273 

Deferred Credits                                 8,135          7,909 

Deferred Income Taxes and
  Regulatory Liability                           7,984          8,151 

      Total                                   $ 89,063       $ 88,622 




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



                                                  Three Months Ended   
                                                       March 31,       
                                                  1998           1997 

Revenues
  Electric                                       $ 9,096        $ 9,560 
  Natural gas                                      9,754         10,702 
  Propane gas                                      1,438          1,442 
  Water                                              424            439 
    Total revenues                                20,712         22,143 

  Cost of fuel and taxes
   based on revenues                              12,793         14,835 

Operating Margin                                   7,919          7,308 

Operating Expenses
  Operations                                       3,461          3,470 
  Depreciation                                     1,046            994 
  Taxes other than income taxes                      542            459 
  Income taxes                                       782            581 
    Total operating expenses                       5,831          5,504 

Operating Income                                   2,088          1,804 



Interest Expense                                    (709)          (759)
Other - Net                                           24              1 

Net Income                                         1,403          1,046 

Preferred Stock Dividends                              7              7 

Earnings for Common Stock                        $ 1,396        $ 1,039 

Earnings Per Common Share                        $   .93        $   .70 

Dividends Per Common Share                       $   .30        $   .30 

Average Shares Outstanding                     1,492,902      1,478,771         



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

                                                Three Months Ended March 31,    
                                                    1998           1997 
Cash Flows from Operating Activities
  Net income                                      $1,403         $1,046 
  Adjustments to reconcile net income to
    net cash provided by operating activities
    Depreciation                                   1,046            994 
    Other                                           (144)          (187)
  Changes in operating assets and liabilities
    Receivables                                      220           (287)
    Inventories and prepayments                      232            544 
    Accounts payable and accruals                  1,042           (293)
    Over recovery of fuel costs                      195          1,180 
    Other                                             28             (9)

    Net cash provided by operating activities      4,022          2,988 

Cash Flows from Investing Activities
  Construction expenditures                       (1,418)        (1,726)
  Other                                              (22)          (164)

    Net cash used by investing activities         (1,440)        (1,890)

Cash Flows from Financing Activities
  Net change in short-term borrowings             (1,700)          (700)
  Dividends paid                                    (454)          (449)
  Other                                               91             97 

    Net cash used by financing activities         (2,063)        (1,052)

Net Increase in Cash                                 519             46 

Cash at Beginning of Period                          123            841 

Cash at End of Period                             $  642         $  887 



                 FLORIDA PUBLIC UTILITIES COMPANY
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                         MARCH 31, 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 March 31, 1998, under the most
     restrictive provision, approximately $5,800,000 of retained earnings
     were unrestricted.


                FLORIDA PUBLIC UTILITIES COMPANY
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                         MARCH 31, 1998



Financial Condition.  The Company has a $15,000,000 line of credit with its
primary bank of which $5,900,000 is outstanding.  The line provides for
interest at LIBOR plus fifty 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 operations:  natural
gas, electric and water and a non-regulated operation, propane gas.  The
water operations are not significant, approximating 2.5% of revenues and 6%
of net income.

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.

                                               1998        1997        1996 
Natural and Propane Gas
  Operating margin                          $ 5,143     $ 4,626     $ 5,313 
  Less propane gas                              820         760         940 
  Remainder                                 $ 4,323     $ 3,866     $ 4,373 

Electric
  Operating margin                          $ 2,371     $ 2,312     $ 2,333 
  Less industrial                               142         133         125 
  Remainder                                 $ 2,229     $ 2,179     $ 2,208 


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

          Three Months Ended March 31, 1998 Compared
            with Three Months Ended March 31, 1997

Natural and Propane Gas Service.  Total natural and propane gas service
operating margin increased $517,000, about 11% in 1998 as compared with 1997. 
Excluding propane gas operating margin from total gas operating margin,
remaining operating margin increased $457,000, about 12%.  The increase in
natural gas operating margin was due to a 1.3% increase in average customers
for the quarter ended March 31, 1998 and an increase in per customer
consumption of about 12%, resulting from an increase in heating degree days
of approximately 60%. Propane gas operating margin increased $60,000 or about
8% as compared with 1997.  Propane gas had an 0.8% decrease in average
customers for the quarter ended March 31, 1998, some of whom were converted
to natural gas.  The net increase in average consumption per customer is
primarily due to the increase in heating degree days.

Electric Service. Total electric service operating margin increased $59,000,
or 2.6% versus the first quarter of 1997.  Affecting the comparison of
operating margins are two industrial customers.  Excluding these customers,
operating margin increased $50,000 or about 2.3%.  There was an 0.8% decrease
in average consumption per customer which was more than compensated for by a
2.3% growth in average customers for the quarter.

Operating Expenses.  In 1998, operating expenses, excluding cost of fuel and
taxes passed-through to customers, increased $78,000, or about 1% in relation
to operating margin.  Generally, operating expenses have increased marginally
due to inflationary pressures with depreciation accounting for approximately
two-thirds of the overall increase.  Most of the increase in depreciation is
attributable to growth in utility plant.

         Three Months Ended March 31, 1997 Compared 
            with Three Months Ended March 31, 1996

Natural and Propane Gas Service. Total natural and propane gas service
operating margin decreased $687,000 or about 13% in 1997 as compared with
1996.  Excluding propane gas operating margin from total gas operating
margin, remaining operating margin decreased $507,000, about 12%.  The
decrease in natural gas operating margin is principally due to a 64% decrease
in heating degree days.  Propane gas service was similarly affected by the
warmer weather in 1997, sustaining a decrease of $180,000 in operating
margin.

Electric Service. Total electric service operating margin decreased $21,000
or 1% in 1997 as compared with 1996.  Affecting the comparison of operating
margin are two industrial customers.  Excluding these customers, operating
margin decreased $29,000.  The effect on consumption of the warmer weather in
1997 as compared with last year was greater than the effect on consumption of
the 2.5% increase in customer growth.

Operating Expenses. In 1997, operating expenses, excluding cost of fuel and
taxes passed-through to customers, increased $149,000, or about 2% in
relation to operating margin.  Operating expenses have generally increased in
all classifications of expense, except for propane delivery costs, due
primarily to inflationary pressures.  Propane delivery costs decreased due to
warmer weather, thereby reducing deliveries.



PART II.

                       OTHER INFORMATION


Item 4.  Submission of matters to a vote of security holders.

         (a) The annual meeting of stockholders was held on April 21, 1998.

         (b) Not applicable.

         (c) Proposal to approve and adopt an amendment to the Certificate
             of Reincorporation, to increase the number of authorized shares
             of common stock from 2,000,000 to 3,500,000 shares.  Shares 
             were voted as follows:

               For                               1,229,622
               Withheld/against                     56,506
               Exceptions/abstain                   19,037
                 Total shares voted              1,305,165
               Broker no vote                      - - -  
               Total shares eligible to vote     1,492,902

         (d) None.

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
             March 31, 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:  May 6, 1998