A system and method for controlling battery power in a hybrid vehicle for a given driver demand that balances battery state of charge and battery capacity limits while operating the engine at a system efficient engine power. Predictive information may be used to predict battery energy usage during a future time window that indicates a charging opportunity (excess power will be absorbed by the battery) or a boosting opportunity (battery power will be discharged). Based on this information and the current state of charge of the battery, an associated battery power for a given driver demand is determined.