I have a Honda generator so, based on Blast's post #1, I visited Honda's web site to see where they stand on the issue. Here's the FAQ on ethanol:

Quote:
What fuel should I use in my Honda?

Honda engines are designed and certified to run on regular unleaded gasoline.

Gasoline is allowed, by regulation, to contain a variety of additives. The same regulation limits how much of some additives, such as alcohol, can be included in the fuel and still allow it to be sold as gasoline. A maximum of 10% ethanol is allowed in gasoline (other oxygenates are also listed). Honda engines are designed for good performance and efficient operation using gasoline containing from 0 to 10% ethanol.
E85, a mixture of 85% ethanol and 15% gasoline, has been in the news recently. E85 is an alternative fuel; it is not gasoline. Honda engines are not designed or certified to run on E85 or any other alternative fuel. Always refer to your owner's manual for a list of recommended fuel and the current approved additives.


I've had my generator for a few years now and I always run the gas tank dry before storage. I used it last week for the first time in 2-3 years and it started on the second pull. I'm not saying that ethanol won't eventually cause problems but I have seen no evidence of trouble - yet.