The Public Service District had a busy year in 2011. In early January 2011 the PSD selected Waste Water Management, Inc. to build a decentralized sewage system for the Snowshoe area. WWMI, headed by owner Dr. David Rigby, designed more than 100 wastewater treatment plants in the 30 years since its founding. The PSD decided the previous plan proposed by Thrasher Engineering was not cost-effective. The decision sparked argument from proponents of both the Thrasher plan and the Rigby plan.

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The West Virginia Public Service commission, which oversees the project, reviewed the Rigby proposal in late January and recommended disapproval of the plan.

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In April 2011, the debate was brought to the Public Service Commission at the state capital where the opinions of residents and Thrasher plan supporters were heard.

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The debate raged on when the PSC issued an order in the case in May 2011. The order provided the PSD with 45 days to obtain approval from the Department of Environmental Protection to complete the first phase of the sewage plan. The order mandated that a decentralized design, that provides the same level of service as the Thrasher plan, be submitted in six months. At the time, the DEP was threatening to issue fines to the PSD for $25,000 a day for discharge violations. Snowshoe Mountain and local landowners filed a complaint to the PSC hoping to force the construction of the Thrasher plan fearing the Rigby plan would not provide enough room for growth and development.

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In June 2011 the DEP gave the PSD the green light to proceed with the first phase of the project.

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In July 2011 allegations of ethics violations were levied against PSD board member David Litsey by Linwood resident Russell Holt and PSD board member Amon Tracey, citing personal financial interests in Litsey's voting decisions. At the time, Litsey served as managing partner for a three-unit condominium at Silver Creek and co-owner of an undeveloped 450-acre tract of land near Silver Creek. The allegations implied Litsey was using his position on the board to steer the project toward his property and acquire sewage service on his land to his benefit, at the cost of taxpayers.

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An attorney representing Snowshoe Mountain and five Snowshoe-area landowners filed a complaint to the West Virginia Ethics Commission regarding the issue. The Ethics Commission notified Litsey August 2 that an investigation would be conducted.

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In late September WWMI presented their design for the Snowshoe area wastewater treatment plant.

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In November 2011 the PSD board heard comments and complaints at their regular meeting regarding the WWMI plan.

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In December 2011 the PSD held a special work session to discuss alternatives and dispense information to the public regarding the project. Pocahontas County Commission president David Fleming was in attendance and expressed his appreciation of the board's efforts. Shortly before the new year, the DEP and the PSC issued a negative review of the Rigby proposal, citing more than 60 deficiencies in the WWMI proposal. A PSC joint staff memorandum recommended the removal or resignation of Litsey for allegedly steering the project for his own economic gain. All parties involved in the case were given 10 days to respond to the memorandum.