2009 Incentive Compensation Plan. On March 11, 2009, the Board of Directors of Florida Public Utilities Company (the "Company") approved the recommendations of its Compensation Committee with respect to the establishment of performance goals under the Company's 2009 incentive compensation plan for the executive officers to be named in the Company's 2009 proxy statement (the "Named Executive Officers"). Incentive compensation will be earned as follows: 75% or a portion thereof upon the Company achieving an EPS target set by the Committee and 25% or a portion thereof upon the Company achieving certain safety and profitability targets set by the Committee and other strategic initiatives assigned by the Board during the year. Alternatively, 100% of the incentive compensation will be earned upon meeting specified Company initiatives set by the Board.

Additional Compensation. On March 11, 2009, the Company's Board of Directors also approved the recommendation of its Compensation Committee with respect to the following cash awards to the Named Executive Officers outside of the 2008 incentive compensation plan, in recognition of their contributions to Board initiatives for the Company:

Name                                            Incentive Amount

John T. English,                                $20,000
President & Chief Executive Officer

George F. Bachman                               $20,000
Chief Financial Officer, Secretary & Treasurer

Charles L. Stein,                               $10,000
Senior Vice President & Chief Operating Officer