While removing some wood paneling from the walls in my basement I discovered some serious water damage to the wall studs. Over the years the damage has caused the bottom of the studs to rot away to the point where it crumbles in your hand.

I plan on replacing the wall and water proofing the foundation the best I can to prevent this from happening again. The problem that I face is that the breaker box is mounted on some of these studs. The studs are damaged ~ 12 inches up from the floor.

So my question is how do I go about replacing the wall with the breaker box on it?

Thanks for the help.

Jason