It is totally up to the store and cashier.  I have had the same experience (just last night).  It is frustrating when one store will let you use a coupon for more than a dollar and let you use your double coupon and another store not accept the same coupon and will not let you use a double coupon.  I had a cashier at the AF Albertson's tell me it is fine and okay to use a coupon higher than a dollar and if any other cashier tells you "no" they are wrong.  Then, last night the Albertson's in N. Orem not let me do the same thing.  It is the luck of the draw with the cashier and store.  I love double coupons from Albertson's but at the same time they are a hassle and annoying when you have to deal with the cashier's. 

I just simply follow the rules and instructions that are printed on the coupon. Which are:

Maximum value $1.00. Coupon valued at $1.01 or higher are not eligible for doubling. Offer does not apply to in-store, competitor, alcohol, tobacco, or FREE Coupons. Total coupon redemption cannot exceed price of item. No cash refund. One double coupon per manufactured coupon. Three double coupons per family, per shopping trip. Photocopies of this coupon are not accepted. Misredemption constitutes fraud.

I've learned if you just simply follow the instructions then there are no headaches. I've asked a cashier about a coupon valued higher than $1 and they simply told me 'no', so I decided not to even try or ask another cashier since that would be against their rules. Even if a cashier would 'let you do it' doesn't mean it's the right thing to do.

Hopefully they will come out with double coupons with a higher value. 

They are really cracking down on a lot of things.  They have been really lenient, but I think that there are too many people abusing the system so they are really having to enforce the rules.

It means that if you double the coupon for that item with Albertsons In-Ad Double coupon offer, it would be that price.