A method for adjusting hydraulic line pressure applied to one or more clutch devices in an electro-mechanical transmission mechanically-operatively coupled to an internal combustion engine and at least one electric machine includes predicting a first plurality of powertrain parameters for an upcoming event. For each of a plurality of engine torques, a predicted output torque and a predicted clutch load are determined that minimize a total powertrain operating cost based on an operator torque request and the predicted first plurality of powertrain parameters. Hydraulic line pressure is adjusted based on the engine torque having a lowest powertrain operating cost among the plurality of available engine torques.