A method and apparatus for managing power in a hybrid vehicle is disclosed. The vehicle includes an engine, an electric motor, and an energy storage element coupled to the motor. The method involves receiving a request to supply operating power to drive the vehicle and responding to the request by selecting an apportionment of operating power between the engine and the motor from among a plurality of apportionments having respective operating costs such that the selected apportionment is associated with a minimum operating cost, the operating cost including at least an engine fuel consumption cost and a storage element lifetime cost. The method further involves causing power to be supplied by at least one of the engine and the motor in accordance with the selected apportionment.