April 18 (Reuters) - California's power companies PG&E ( PCG )

, Edison International ( EIX ) along with state energy

agencies said on Thursday they have applied for $2 billion

federal grant to increase grid capacity and deliver renewable

energy.

The grant applied to the U.S. Department of Energy (DOE) if

approved would be used to increase statewide transmission

capacity, streamline the process of connecting renewable energy

projects to the grid and boost supply while lowering costs.

The DOE's Grid Resilience and Innovation Partnerships (GRIP)

Program is administering $10.5 billion in grants to enhance

country's grid flexibility and resilience against growing

threats of extreme weather and climate change.