Unbilled Revenue

We bill our regulated sales of natural gas at tariff rates, as approved by the Kentucky Public Service Commission. Our customers are billed on a monthly basis; however, the billing cycle for certain classes of customers do not necessarily coincide with the calendar month-end. For these customers, we apply the unbilled method of accounting, where we estimate and accrue revenues applicable to customers, but not yet billed. The related natural gas costs are charged to expense. At the end of each month, natural gas service which has been rendered from the date the customer's meter was last read to the month-end is unbilled. Unbilled revenues are included in regulated revenues and unbilled natural gas costs are included in regulated purchased natural gas on the accompanying Condensed Consolidated Statements of Income. Unbilled revenues are included in accounts receivable on the Condensed Consolidated Balance Sheets. As of December 31, 2015 and June 30, 2015, unbilled natural gas costs are included in deferred natural gas costs and regulatory liability-refundable natural gas costs on the accompanying Condensed Consolidated Balance Sheets, respectively. Unbilled amounts include the following:



	December 31,	June 30,
(000)	2015	2015

Unbilled revenues ($)	4,411	1,674
Unbilled natural gas costs ($)	1,549	462
Unbilled volumes (Mcf)	336	69