BROWNSVILLE, Texas (AP) - Hurricane Dolly has been hitting the South Texas coast with punishing rain and winds.

It blew ashore as a Category 2 storm with 100 mile-per-hour winds, but has since weakened slightly to Category 1, with winds of 95 miles-per-hour.

The storm has damaged an apartment complex and knocked out power to thousands.

But local officials are no longer as worried the storm could cause a breach in the levees holding back the Rio Grande, and lead to massive flooding. A Cameron County emergency official says, "The levees are holding up just fine."

Up to 12 inches of rain -- with isolated totals of as high as 20 inches -- are still being forecast. Thunderstorms blamed on Dolly have been hitting as far away as Houston, hundreds of miles up the Texas coastline.

Dolly is the first hurricane to hit the U.S. since Humberto came ashore in South Texas last September.

(Copyright 2008 by The Associated Press. All Rights Reserved.)