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It raises the cap of a spell. Normally, Shocking Grasp reads:
"Your successful melee touch attack deals 1d6 points of electricity damage per caster level (maximum 5d6)."
An intensified Shocking Grasp would read:
"Your successful melee touch attack deals 1d6 points of electricity damage per caster level (maximum 10d6)."
You still need the actual caster levels to deal the full 10d6 of damage.