NAGS HEAD, N.C. (AP) - Hurricane Ophelia now carries top winds of 85 miles an hour as it creeps up the North Carolina coast.

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Forecasters now expect the northern side of the storm's eyewall to reach North Carolina's southeast coast late today.

At 2 p.m., Ophelia was about 40 miles southeast of Wilmington, North Carolina. The storm is moving north-northeast at seven miles an hour. Highest winds are up to 85 miles an hour.

Tens of thousands in two coastal counties are already without power.

The Federal Emergency Management Agency has at least 200 workers in North Carolina for the first hurricane since Katrina devastated the Gulf Coast.

North Carolina's governor warns that the storm surges could reach eleven feet. He says people in flood-prone areas "need toget out."

The National Hurricane Center has dropped the hurricane warning for the South Carolina coast. A tropical storm warning is still in effect from Little River south to Georgetown. The tropical storm warning has been dropped south of Georgetown.

S.C. Governor Mark Sanford is advising residents in Charleston, Georgetown and Horry counties to remain cautious if they decide to return home.

"It appears that South Carolina has avoided the worst effects of Hurricane Ophelia, Governor Sanford said. "When local officials determine it is safe to return home, I encourage residents to do so."

Ophelia is the 15th named storm and seventh hurricane in this year's busy Atlantic hurricane season, which began June 1 and ends Nov. 30.