With less than four weeks to go before the City selects a cable franchise, Cambridge's cable television license appears to be heading toward American Cablesystems Corporation, based on a report released this weel by the City.

Three cable franchises have been competing for the 15-year, $32 million contract since Cambridge first accepted bids one year ago.

Although a 213-page report by a Washington-based consulting firm for the City did not specifically recommend any of the three competitors, the study did rate American above the Cambridge Cablevision Corporation (3C) and the Cambridge Consumer-Owned Telecommunication, Inc. (Cable Plus) in most of the categories under consideration.

City Manager Robert W. Healy will decide the recipient of the coveted contract by the end of the month.

The Rice Associates report cited American Cable for:

* Reasonable financial projections which reflect American's "experience and detailed level of planning for the Cambridge system."

* The most realistic proposal for "local origination," a cable industry term for programming produced locally by the company.

* A transmission capacity, system reliability, and construction rate all superior to the other two applicants.

* The most comprehensive institutional network, a feature which will link institutions and large business organizations with in refractive cable systems.

But American was criticized for proposing to charge the highest fees to basic subscribers, a lack of limited community ownership in the company, and for enjoying fewer Cambridge residents than its two competitors.

Many regarded American, the 27th largest cable company in the U.S., as the most conservative of the choices and therefore the least risky for the City.

The study concluded that: Cable Plus's much-touted public access plan--which calls for a variety of programming produced by individuals, community organizations, and institutions and is managed by an independent, non-profit corporation--was the most favorable and detailed. Cable Plus was par- ticulary noted for its large commitment of funding to shows geared toward women, minorities, and local schools.

The issue of public access has dominated the cable selection process in Cambridge because "citizens want to make their own programs rather than subscribe to-canned or packaged shows," said one 3C employee.

But the report questioned Cable Plus's optimistic financial projections and its control over important aspects of operations.

Cable Plus, owned by its subscribers much like the Harvard Cooperative Society, is the only cooperative company vying for the Cambridge license.