What is the affect of 10% ethanol on octane ratings?

Question:
What is the effect of 10% ethanol on octane ratings?
All gas stations where I live (Massachusetts) use 10% ethanol in all grades of gas. I want to know if anyone knows if this affects the octane rating at all. Ethanol has an octane rating of 110 so if they used 90% 87 octane and 10% 110 octane it would actually bring the octane to around mid grade level. I want to know if this is true or if the gas companies compansate for this and start off with even lower octane gas before they add the ethanol. If they dont then I should be able to run mid grade gas and get the full effect of premium.

Answers:

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