The pilot reported that the wind shifted before departure and the balloon would travel to an area with "limited landing opportunities", but he elected to continue the departure. During landing, the balloon descended to approximately 20-30 ft. above the ground, and the landing area was on a dry hillside just past a wetland. He added that the hillside had a commercial building on the top, and at the base of the hill was a short pole with guy-wires. He did not see any other poles, so he "focused" on the intended landing site. As the balloon approached the landing site, a passenger asked, "if we would hit that powerline?" He looked up and saw two powerlines above and forward of the balloon's path, and he immediately vented the balloon to land and stop their forward progress. The balloon collided with the powerlines and settled to the ground.

The balloon sustained substantial damage to 3 of its 24 cables that attach the envelope to the basket.

The pilot reported that there were no preaccident mechanical failures or malfunctions with the balloon that would have precluded normal operation.