On August 15, 1994, at 2000 central daylight time, a Thunder & Colt 120A free balloon, N416TC, owned and operated by Walter R. Rudy of Bloomington, Illinois, sustained substantial damage when it contacted powerlines while landing in Bloomington, Illinois. The commercial pilot and two passengers reported no injuries. Two passengers sustained serious injuries and one passenger sustained minor injuries. The sight-seeing revenue flight originated near Bloomington, Illinois, about 1930 and was conducted under 14 CFR Part 91 in visual meteorological conditions. In his written statement, the pilot reported he received weather information from Direct User Access Terminal Service (DUATS), from commercial television, and from the Bloomington Tower. Also, a helium pilot observation balloon (PIBAL) was launched. He said the first 20 minutes of the flight were unremarkable and winds were about three knots. He said that while descending through 1,600 feet mean sea level (MSL) the balloon began to circle with the wind and was "pulled" toward downtown Bloomington. The pilot reported the balloon was entrained in a "large thermal." He made three approach attempts, and aborted each because of the "circling wind." He said the balloon was moving "precariously close" to a tower and the downtown area. He made an approach to a parking lot then attempted to land on the roof of a building. The basket slid over the building and the envelope continued into powerlines on the leeward side. He said there was a "loud pop and a bright flash" and the basket settled gently to the ground. Ten flying wires on the balloon were melted. The nomex skirt was torn and several panels were scorched and abraded.