An optical amplifier system and controller and a method for automatically controlling the usable signal power of an optical amplifier are provided. The method differentiates between the total optical power that includes the amplified spontaneous emission (ASE), and the useful amplified optical signal power at the output of the amplifier. The optical amplifier system comprises an optical amplifier, a first and a second photodetector operable to measure the power of the input and output signals of the optical amplifier and an amplification controller with a control input. The amplification controller is operable to compensate for the ASE power when operating in automatic signal power control mode.