to a Category 2 storm with maximum sustained winds near 100 mph (160 kph). The storm center is about 30 miles (48 kilometers) east-northeast of Brownsville in southern Texas.
The eye is expected to hit the coast near the Texas-Mexico border.
Dolly, upgraded from a tropical storm Tuesday, had sustained winds of 95 mph (153 kiph), just short of becoming a Category 2 storm. At 9:00 a.m. EDT (1300 GMT) Wednesday, the storm's center was about 40 miles (64 kilometers) east of Brownsville in south Texas, moving northwest at about 8 mph (13 kph).
A hurricane warning was in effect for the coast of Texas from Brownsville to Corpus Christi and in Mexico from Rio San Fernando northward.
Utility company AEP Texas reported power outages to more than 9,200 customers in Cameron County. The causeway linking South Padre Island to the mainland remained closed early Wednesday.
National Weather Service radar indicated a tornado 18 miles (29 kilometers) northeast of the Harlingen Valley Airport on Wednesday morning. A tornado watch was in effect for several counties in the area until 10:00 a.m. CDT (1500 GMT) Wednesday.
Cities and counties were preparing Tuesday night as officials feared heavy rains could cause massive flooding and levee breaks.
Texas officials urged residents to move away from the Rio Grande levees because if Dolly continues to follow the same path as 1967's Hurricane Beulah, "the levees are not going to hold that much water," said Cameron County Emergency Management Coordinator Johnny Cavazos.
Late Tuesday, the causeway linking the mainland to South Padre Island was closed as winds ramped up, Dan Quandt, a spokesman for Brownsville's emergency operations. He said no one would be allowed onto or off of the island, with the causeway not likely to open again until Wednesday evening at the earliest. He said winds were not predicted to reach speeds requiring evacuation.