Abstract How to manage wind power uncertainty in system operation is an urgent and important issue, especially under substantially increasing penetration levels of wind generation in electric power systems. With increasing numbers of wind power plants (WPPs) integrated into power systems, their variability and uncertain power outputs become a challenge to maintaining system reliability. Traditional stochastic optimization-based models face the curse of dimensionality when the number of WPPs increases. This paper proposes a novel decentralized wind power uncertainty management model. In this model, conventional generators optimize their power capacity output and their participation to mitigate wind power uncertainty locally with only limited information exchange with the system operators. First, a distributionally-robust chance-constrained optimal power flow (DRCC-OPF) model is deployed to schedule the generation and reserve considering the wind power forecast uncertainty. Then, the alternating direction method of multipliers (ADMM) is used to reformulate the DRCC-OPF model into the distributed optimization model for each conventional generator and WPP. The tests on a small PJM 5-bus system and the IEEE 118-bus system demonstrate that the proposed decentralized model can increase the operation reliability without sacrificing system operating cost, especially when the wind power penetration levels are high. Using the proposed model, the optimal solutions can be obtained within one minute, for all studied cases, which verifies the computation efficiency of the proposed decentralized model. Furthermore, considering a large number of WPPs integrated into the system, the proposed decentralized method obtains a lower operating cost within one minute which demonstrates its efficiency to deal with high dimension of uncertainties.