| Anguish |
I think the answer is yes. Witness a 2nd level psion. They can augment a power to 2pp, which is more powerful than a 1st-level power starts out at. Also, saving throws don't increase unless specifically stated, so there's precedent for the power-level not actually increasing.
The other thing I'd dig for if this was important to me would be concentration checks. Does the DC for a concentration check go up just because you've augmented the power? That might illuminate what's intended.