I agree with others' interpretation of this spell as written in the SC. It seems like the intent of the spell was to make a Ray of Enfeeblement analog, but since ability penalties and ability damage are handled differently (as Hyp and others mentioned, penalties cannot reduce a score below 1, but ability damage can) I'd just change it to a 1d4+1 penalty to Intelligence.
Hmm, in such a case, should the spell's level be lowered to 1 to reflect its approximately equal utility to Ray of Enfeeblement? I've thought that RoE should be 2nd level before, but I don't like to make too many granular houserule changes such as this... it just becomes too much to remember.