Far be it for me to disagree with the number 2 member of the site, but I think that Gandalf upon his return is both given new power and allowed to reveal more of his power.
"So Gandalf sacrificed himself, was accepted, adn enhanced, and returned. . . . Of course he remains similar in personality and idiosyncrasy, but both his wisdom and power are much greater." (Letter 156)
"Gandalf may be enhanced in power (that is, under the forms of this fable, in sanctity), but if still embodied he must still suffer care and anxiety, and the needs of the flesh" (Letter 156)
Thus, we see Tolkien two statements referring to Gandalf having knew power. The idea that Gandalf's mission is enlarged and consequently he is allowed to use more of his power is made clear in Letter 156: "He was sent by a mere prudent plan of the angelic Valar or governors; but Authority had taken up this plan and enlarged it, at the moment of its failure," (Authority equaling Eru) and furthermore, "He is still under the obligation of concealing his power and of teaching rather than forcing or dominating wills, but were the physical powers of the Enemy are too great for the good will of the opposers to be effective he can act in emergency as an 'angel. . . . In one or two cases in the War (in Vol. III) he does reveal a sudden power."
But the idea that Gandalf's actual power was increased can be developed farther. What is the importance of Gandalf being recieved and sent back by Eru rather than just the Valar? It could be just meant as the only possible way in which Gandalf could be given a new body after being incarnated, but it seems to be more. In recieving and sending back Gandalf, Eru is in an express position to put more power into him; he really has to give him power in order for him to be reincarnated (Gandalf at the time does not have the power to do it himself).
Finally, the argument comes back to the nature of Gandalf and the Istari. Prior to being sent to Middle-earth, Saruman is described as the most powerful of the five in their normal maiarian conditions, and these he is considered the most powerful and head of the istari on Middle-earth when incarnated. However, "Olorin declared that he was too weak for such a task, and that he feared Sauron" (Unfinished Tales"). But when Gandalf/Olorin returns as the White, he is illustrated as far more powerful than he describes himself while not even limited as an istar. Gandalf the White is not scared of Sauron enemy more; "he sums himself up: 'I was the enemy of Sauron'. He might have added: 'for that purpose I was sent to Middle-earth'. But by that he would at the end have meant more than at the beginning" (Letter 154). Olorin in his non-Gandalf form would have hardly been able to stand at the falling city of Minas Tirith in front of the Witch-king and army of Mordor valiantly, but upon being recommissioned by Eru, it is no problem even though his powers are somewhat limited. And ultimately, if the five istari were to be made discarnate, there is no doubt that Gandalf would still be the most powerful of them.
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"He was sent by a mere prudent plan of the angelic Valar or governors; but Authority had taken up this plan and enlarged it, at the moment of its failure."
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