Ethanol, despite its lower BTU/gallon content, provides equal or greater power than gasoline thanks to an Octane of 113 (E85 is roughly 105). Ignition timing can be greatly advanced versus regular undleaded (87 octane) which in turn allows the the fuel to burn more fully at and after the peak compression point, increasing the torque of the engine.

My guess is the engine computer must compensate though for the lower BTUs of ethanol by injecting more fuel, which is why gas mileage can go down.

I can't speak for your experience, but every car I've owned has definately performed the same, if not better, when using E10, except for a 0.5-1 mpg decrease in fuel economy. I drove from Iowa to NYC and back this summer using exclusively E10. 2500 miles+. Not so much as a hiccup. Averaged 34mpg in my Dodge Stratus 2.0L/5 speed with the A/C on and an 80mph cruise.

On another note, I wish Ford would make their 3.0L and 2.3L engines E85 capable.

Ford has had an E85 3.0 for years. Look for the Taurus' with the green leaf on the fender indicating that they are flex fuel. They are part of that 1 million FFV made in the last decade.

As to power yes when burning E85 the timing can be advanced to take advantage of the much greater knock resistance. Humm E85 and forced induction comes to mind. Computer could turn up the boost when E85 is used.

At this point I’m just thankful that Ford is actually putting their money into alleviating the energy crisis with flex-fuel engines, because every gallon less gasoline consumed means less stress on the worlds absolute dependence on that stuff. So you suffer a little on performance, so what! At least you have something that runs and you don’t have to worry about whether the CEO of EXXON thinks of yet another reason why he can gouge you a little more, then blame it on the Arabs and tell you you’re still getting such a good deal on price sweetheart, while you're bent over.

Ford, since you’re spear heading this Flex-Fuel effort which I support, how about a Ford Universal Flex-Fuel Engine, see US Patent 6,947,830, runs on any combustible fuel. This baby should get us through the hydrogen transition so we can wean ourselves off the sauce and onto something, anything, cleaner and less toxic. I would love to see a Ford commercial with guys arguing over what goes into a fuel tank and whether it’s cleaner or less toxic, no cleaner, no less toxic. You can be the first to say “we have the engine that runs on anything, so you choose.”

Walt