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, 1997

                                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, 1997 there 
were 1,488,586 shares of $1.50 par value common shares outstanding. 






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


                                          September 30,  December 31, 
                                               1997          1996     

ASSETS

Utility Plant                                 $111,001       $106,684 
  Less accumulated depreciation and
    amortization                                38,842         36,808 
      Net utility plant                         72,159         69,876 
 
Current Assets
  Cash and overnight investments                   512            841 
  Accounts receivable - net                      7,375          8,062 
  Inventories and prepayments                    3,909          4,079 
      Total                                     11,796         12,982 

Investments Held in Escrow for
  Environmental Costs                            2,890          2,881 

Deferred Charges                                 1,095          2,430 

Deferred Income Taxes and 
  Regulatory Asset                               2,953          2,825 
  
      Total                                   $ 90,893       $ 90,994 


CAPITALIZATION AND LIABILITIES

Capitalization
  Common shareholders' equity                 $ 25,894       $ 24,511 
  Preferred stock                                  600            600 
  Long-term debt                                23,500         23,500 
      Total                                     49,994         48,611 

Current Liabilities
  Notes payable                                  5,400          7,900 
  Accounts payable                               5,619          7,564 
  Taxes accrued                                  1,650            308 
  Other                                          5,543          4,677 
  Customer deposits                              3,768          3,634 
      Total                                     21,980         24,083 

Deferred Credits                                 8,145          6,975 

Deferred Income Taxes and
  Regulatory Liability                          10,774         11,325 

      Total                                   $ 90,893       $ 90,994           



      
      
                  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,  
                                         1997       1996       1997       1996

Revenues
  Natural gas                         $ 6,151    $ 6,016    $24,431    $23,914 
  Electric                              11,328    11,474     29,779     31,478 
  Water                                    526       530      1,451      1,427 
  Propane gas                              727       736      3,092      3,374 
     Total revenues                     18,732    18,756     58,753     60,193 

Cost of Fuel and Taxes
 Based on Revenues                      12,410    12,579     38,737     39,834 

Operating Margin                         6,322     6,177     20,016     20,359 

Operating Expenses
  Operations                             3,565     3,583     10,486     10,413 
  Depreciation                           1,010       973      3,007      2,896 
  Taxes other than income taxes            468       433      1,373      1,273 
  Income taxes                             179       119      1,016      1,302 
    Total operating expenses             5,222     5,108     15,882     15,884 

Operating Income                         1,100     1,069      4,134      4,475 

Interest Charges and Other
  Interest expense                        (717)     (705)    (2,199)    (2,131)
  Other income (expense)                    12       (23)        32        (21)
  Gain from sale of non-utility            837                  837 
   property
  Income taxes on above gain              (315)                (315)  

Net Income                                 917       341      2,489      2,323 
  
Preferred Stock Dividends                    7         7         21         21 

Earnings For Common Stock              $   910   $   334    $ 2,468    $ 2,302 

Earnings Per Common Share              $   .61   $   .23    $  1.67    $  1.57 

Dividends Per Common Share             $   .30   $   .30    $   .90    $   .90 

Weighted Average Common Shares
  Outstanding                        1,486,355 1,471,295  1,482,141  1,467,416  






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


                                                        Nine Months Ended 
                                                          September 30,
                                                        1997          1996 
Cash Flows from Operating Activities
  Net income                                         $ 2,489       $ 2,323 
  Adjustments to reconcile net income to net
    cash provided (used) by operating activities
    Depreciation                                       3,007         2,896 
    Gain from sale of non-utility property              (837)
    Deferred income taxes                               (678)          276 
    Other                                                196           201 
  Changes in operating assets and liabilities
    Accounts receivable                                  563           199 
    Inventories and prepayments                          170          (295)
    Accounts payable and accrued expenses                392         2,196 
    Environmental insurance proceeds                     259           103 
    Over/(under) recovery of fuel costs                2,060          (305)
    Other                                                (12)          (69)

    Net cash provided by operating activities          7,609         7,525 

Cash Flows from Investing Activities
  Construction expenditures                           (5,416)       (5,550)
  Proceeds from sale of non-utility property             886                  
  Other                                                  194           141 

    Net cash used by investing activities             (4,336)       (5,409)

Cash Flows from Financing Activities
  Repayments of short-term borrowings - net           (2,500)         (300)
  Dividends paid                                      (1,351)       (1,324)
  Other                                                  249           201 

    Net cash used by financing activities             (3,602)       (1,423)

Net Increase (Decrease) in Cash and Overnight
   Investments                                          (329)          693 

Cash and Overnight Investments at Beginning
  of Period                                              841           270 

Cash and Overnight Investments at End of
  Period                                             $   512       $   963 





                 FLORIDA PUBLIC UTILITIES COMPANY
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        SEPTEMBER 30, 1997

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, 1997, under the most restrictive
     provision, approximately $4,600,000 of retained earnings were unrestricted.

3.   In September 1997, the Company sold non-utility, unimproved real property
     for a gain after income taxes of $522,000, equal to $0.35 per share.
          




                FLORIDA PUBLIC UTILITIES COMPANY
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                        SEPTEMBER 30, 1997



Financial Condition.  The Company has a $15,000,000 line of credit with its
primary bank of which $5,400,000 was outstanding at September 30, 1997.  The 
line provides for interest at LIBOR plus one-half percent.  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 segment, propane gas.  
The gas and electric segments aggregate approximately 94% of total operating 
margin.

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 central and southern Florida during the winter season.

Summary of Operating Margins
  (in thousands)
                                            Nine Months Ended September 30, 
                                              1997        1996         1995
Natural and Propane Gas
  Operating margin                         $11,389     $11,846      $10,831
  Less propane gas                           1,728       1,979        1,905 
  Remainder                                $ 9,661     $ 9,867      $ 8,926 

Electric
  Operating margin                         $ 7,161     $ 7,164      $ 6,894 
  Less industrial                              428         407          462 
  Remainder                                $ 6,733     $ 6,758      $ 6,432 

                                           Three Months Ended September 30, 
                                              1997        1996         1995 
Natural and Propane Gas
  Operating margin                         $ 3,152     $ 3,097      $ 3,027 
  Less propane gas                             442         462          464 
  Remainder                                $ 2,710     $ 2,635      $ 2,563 

Electric
  Operating margin                         $ 2,544     $ 2,548      $ 2,529 
  Less industrial                              148         142          154 
  Remainder                                $ 2,396     $ 2,406      $ 2,375 

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 and fluctuations in such costs distort the relationship of gross
operating revenues and operating margin (revenues retained by the Company for
operating purposes).

Nine Months Ended September 30, 1997 Compared With Nine Months Ended
September 30, 1996

Natural and Propane Gas Service.  Total natural and propane gas service 
operating margin decreased $457,000 or about 4% in 1997 as compared with 1996.  
Excluding propane gas operating margin from total gas operating margin, 
remaining operating margin decreased $206,000 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. 

Total natural and propane gas service operating margin increased $1,015,000 or
about 9% in 1996 as compared with 1995.  Excluding propane gas operating margin
from total gas operating margin, remaining operating margin increased $941,000,
or about 10% as compared to 1995.  The increase in natural gas operating margin
is due primarily to an approximate 45% increase in heating degree days from the
comparable period in 1995 and the effect of an approved final increase in base
rates of $1,282,000 annually, which commenced May 1995 (approved lesser interim
rates were in effect for the year until May 5th of 1995).  Propane gas operating
margin increased $74,000, or about 4%.  Similarly, the increase in propane gas
operating margin is due principally to the colder weather in 1996.

Electric Service.  Total electric service operating margin decreased $3,000 in
1997 as compared with 1996. Affecting the comparison of operating margin are two
industrial customers.  Excluding these customers, operating margin decreased
$25,000.  The effect on consumption of the warmer weather early in 1997 more 
than offset customer growth of 2.4%.

In 1996, total electric service operating margin increased $270,000, or about
4%, as compared with 1995.  Affecting the comparison of operating margins are 
two industrial customers and excluding these customers, operating margin 
increased $326,000, or about 5%.  The remaining increase in operating margin is 
due principally to a 2% growth both in customers and in average consumption per
customer.

Operating Expenses.  In 1997, operations expenses (administrative and general
expenses and other operating 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 corp-
orate headquarters and growth of our utility plant and taxes other than income 
taxes increased due to an increase in property taxes.

In 1996, total operating expenses, excluding cost of fuel and taxes passed-
through to customers, increased $506,000, or 2.5% in relation to operating
margin.  Operating expenses have increased generally in all classifications of
expense due primarily to inflationary pressures.

Income taxes were provided for at approximately the same rate in both nine-month
periods.  The principal differences between the effective income tax rate and 
the statutory federal income tax rate is the effect of state income taxes and
amortization of investment tax credits.

Interest expense increased in 1997 versus 1996 due primarily to greater weighted
average amounts outstanding at slightly greater rates in 1997 as compared with
1996.

Cash Flows.  Net cash provided by operating activities increased only slightly
when compared with last year.  There were, however, significant changes in
certain items.  The most significant of the changes occurred in over/under
recovery of fuel costs, a change of $2,365,000, due to increased natural gas
prices in 1996 that were recovered from customers in 1997.  Also, a change of
$1,804,000 in accounts payable and accrued expenses, due principally to  a
decrease in accounts payable, resulting from a decrease in the cost of natural
gas from year-end 1996 to September 1997.  The change in deferred taxes results
from the change in over/under recovery of fuel costs.


Three Months Ended September 30, 1997 Compared with Three Months Ended 
September 30, 1996

Natural and Propane Gas Service.  Total natural and propane gas service 
operating margin increased $55,000 or about 2% in 1997 as compared with 1996.  
Excluding propane gas operating margin from total gas operating margin, remain-
ing operating margin decreased $75,000 or about 3% 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 $20,000, 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.

Total natural and propane gas service operating margin increased $70,000 or 
about 2% in 1996 as compared with 1995.  Excluding propane gas operating margin 
from total gas operating margin, remaining operating margin increased $72,000, 
or about 3% as compared to 1995.  The increase in natural gas operating margin 
is due primarily to customer growth.  Propane gas operating margin was 
virtually unchanged.

Electric Service.  Total electric service operating margin decreased $4,000 in
1997 as compared with 1996.  Excluding the two industrial customers operating
margin decreased $10,000.

Total electric service operating margin increased $19,000 in 1996 as compared
with 1995.  Affecting the comparison of operating margins are two industrial
customers.  Excluding these customers, operating margin increased $31,000, or
about 1%. 

Operating Expenses.  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.

In 1996, total operating expenses, excluding cost of fuel and taxes passed-
through to customers, increased $225,000, less than 4% in relation to operating
margin.  Operating expenses have generally increased in all classifications of
expense due primarily to inflationary pressures.

Income taxes were provided for at approximately the same rate in both three 
month periods.  The provisions were adjusted by a credit in 1996 and a debit in 
1995, according to accounting principles established by Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes", for the net
amortization of deferred taxes that were never provided for and the turn-around
of deferred taxes at current rates that were originally provided for at higher
rates.

Interest expense increased in 1997 versus 1996 due primarily to greater weighted
average amounts outstanding at slightly greater rates in 1997 as compared with
1996. 















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, 1997

                                  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 7, 1997