Hydro power generation of the State has marginally improved with water level in majority reservoirs slowly increasing following low pressure induced torrential rains in the upper catchment areas during the last couple of days. The live storage capacity of seven reservoirs having hydro power stations is marginally above the minimum draw down level (MDDL) since May. This forced the Orissa Hydro Power Corporation (OHPC) to step down power generation. Gridco has been procuring high cost thermal power from the eastern grid from the last week of May to meet the peak demand of the State. However, the hydro power situation started improving only last week. With an installed hydro power capacity of 1995 MW, OHPC has been meeting more than half of the energy demand of the State in good hydro situation. The balance energy requirement were met from thermal generation from within the State and the Central pool. The average peak energy demand of the State is in the range of 2,400 MW to 2,600 MW. In normal situation, the average generation of OHPC is about 1,700 MW. However, the average hydro generation in May and June was around 600 MW due to falling water level. Gridco had to spend additional Rs 26 crore over and above the approved rate for buying high cost power to meet the State demand, said director (commerce) A.C. Mallik. If the current trend of the monsoon continues and the upper catchment areas particularly Andhra Pradesh and Chhattisgarh received good rainfall, the hydro position will improve significantly. If the monsoon plays truant in those two states, it will be equally bad for Orissa so far as hydro power is concerned, said an OHPC officer.