This paper proposes an approach to schedule and allocate regulating reserve in systems with a large share of generation from wind power plants (WPPs). The method for scheduling regulating power is based on the correction of day-ahead schedules planned by the known variations of the load- and wind-power from the previous hour. The correction term incorporates the tendency of changes for previous hours. In this way, more of the regulating power can be reserved during sudden changes in the intensity of the wind. Hence, available existing operational data are required, instead of historical data. The method for allocation of regulating power to regulating units is based on minimization of the transmission losses with optional correction according to economic criteria. The qualitative analysis of the relevant economic features is introduced, as well as the possibilities for applying advanced information and communications technology. The methods discussed were tested for the standard test network RTS 96 and for the Croatian transmission network. Test results showed considerable reduction of the unnecessary positive and negative regulating reserve with increased safety compared to the classic method. Furthermore, optimal allocation of regulating reserve reduced transmission losses for all the cases discussed. Reductions were more significant when the layouts of WPPs and regulating capacities were more geographically dispersed.