CHATTANOOGA, Tenn. (AP) -- The Tennessee Valley Authority agreed to pay $42 million in bonuses and other fees to contractors for work on the Browns Ferry reactor restart that ran $90 million over budget.

With TVA rates about to increase by 20 percent, the directors agreed to pay Bechtel Power Corp. and Stone and Webster Construction Inc. $15.5 million each, plus another $11.3 million in fees to settle a legal dispute.

A leader of the anti-nuclear group known as the Bellefonte Efficiency and Sustainability Team told the Chattanooga Times Free Press that the payment of bonuses on a project that was over budget raises questions.

The contractors initially sought an additional $76 million in performance bonuses. TVA had said the contractors were due only $24 million in bonuses.

TVA Senior Vice President Ashok Bhatnagar said last week that the $42 million "is a fair settlement."

------

(Copyright 2008 by The Associated Press. All Rights Reserved.)