I can duplicate this on my laptop with Edgy. Also with a radeon x700

Step 1)  On the menu go to System > Preferences > Power Management
Step 2) On the battery power tab, select a time to "Put Display to Sleep"
Step 3) Wait X amount of minutes and the screen will go black, however the 
backlight remains on. 

I'm not sure if this is even a bug, or how it's intended to work. It
seems silly to me but who knows.

-- 
[Edgy] Screen isn't switched off on energy saving
https://launchpad.net/bugs/81045

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